Propelled by low interest rates and strong demand for senior housing services, senior housing investments and acquisitions are finishing up the year strong. Parties that are seeking capital to take advantage of this dynamic and acquire properties of their own should contact Cambridge Realty Capital to learn more about the many differentfinancing options that it offers for acquisitions, sale/leasebacks, joint ventures and other purposes as well.
A Major REIT Closes a Deal
About a month after announcing that it would purchase 29 properties from Diamond Senior Living for $305 million, Aviv REIT has finally closed the transaction. This was Aviv REIT’s largest acquisition in over twenty years and included a range of senior housing properties such as an office building, skilled nursing facilities, assisted living and independent living facilities as well. All of the properties are leased to Aviv REIT’s operator Laurel Health Care and should generate an initial cash yield of 8.5%
A Northeast Provider Expands its Portfolio
In New England, the nursing home consortium Synergy Health Centers has expanded its portfolio by acquiring Champion Rehabilitation and Health Center in Brockton, Massachusetts, which it promptly renamed Brockton Health Center. Synergy is very excited to add Brockton Health Center to its portfolio because it increases the number of senior housing properties that it has in Massachusetts to eight, and with 123-beds, Brockton is also capable of generating substantial revenues at higher occupancy levels and significantly boosting Synergy’s net operating income (NOI) in the process. Akiva Horowitz, Brockton’s Executive Director, is also excited about the purchase as evidenced by his statement that“We are ecstatic to be coming under the Synergy umbrella. They have proven themselves to be a highly capable nursing home operator here in the state, with many out-of-the-box programs and revolutionary ideas on how to bring senior care to another level. As the new Brockton Health Center, we are turning over a new leaf and can’t wait to show the community of Brockton what we have to offer.”
A Large Senior Housing Company Makes a Major Purchase
In an effort to expand its portfolio and generate the returns that could come from doing so, New Senior Investment Group has decided to purchase a 17-property portfolio from Hawthorn Retirement Group LLC for $435 million. This purchase will add 2,082 units across 10 states to New Senior Investment Group’s holdings, giving it a presence in 30 states while also increasing the total number of properties it owns to 117 and its total bed count to approximately 14,500. The acquired portfolio’s occupancy rate was 92% as-of the end of November and it is expected to produce an NOI after management fees of roughly 6.3%.
A Senior Housing Operator Acquires Land for Development
Lastly, in Florida, another senior housing participant has also made a key acquisition, only this time it was to add land to its portfolio of assets instead of another property. Specifically, Senior Lifestyle Corporation, which develops and operates senior living facilities in Sarasota County and Tampa, Florida, has purchased a parcel of land in Lakewood Ranch, Florida for $2.5 million and plans to build on assisted living facility atop it.
These are just a few examples of the many different acquisitions that are taking place across the country as providers and investors end the year on a high note. Industry participants that are interested in following the same strategy of growth through acquisitions should continue to look to Cambridge Realty Capital for assistance in financing these and other senior housing transactions as well.