As the year winds down, senior housing acquisitions are still taking place at a fast clip.

Examples of this can be found all across the country but especially in the West where a string

of high-profile acquisitions have recently taken place.

In Abilene, Texas, the Covenant Group and Sagora Senior Living have joined forces to

purchase the retirement community University Place. The two companies will invest a

substantial amount of resources in the community as Sagora Senior Living will redesign the

community’s interior and start multiple community programs as well. This purchase adds 124

independent living units to the companies’ portfolios and helps extend their footprint in the fast

growing western region of the United States.

Also in Texas, Senior Living Investment Brokerage, Inc. recently announced that it has sold a

54,000 square-foot skilled nursing facility (SNF) to an undisclosed buyer in Oklahoma for $4.5

million. The SNF is located on 5 acres of land in Lufkin, Texas, has over 145 beds and is

called The Grace Care Center of Lufkin. The buyer has enlisted an operator from Fort Worth,

Texas to manage the facility and it will have a fair amount of work to do as occupancy has

hovered around 65% for the past few years. Despite the low occupancy figures, the buyer is

still excited about the facility as evidenced by its plans spend over $1 million on capital

improvement for the property. It believes that with a skilled manager and some quality

improvements, occupancy will increase markedly and increases in revenues and profits will

quickly follow.

Meanwhile, over in the Northwest, Summit Healthcare REIT, Inc. has purchased a 55 bed

skilled nursing facility in Myrtle Point, Oregon for roughly $4.2 million. Summit Healthcare will

lease the facility to Dakavia Management Corporation and Dakavia will operate it as well. This

arrangement should work well since Dakavia has more than two decades of experience in

senior housing and already operates five of Summit’s other properties.

Lastly, multiple records were just set in Utah with the recent sale of a senior housing

community in Layton. Specifically, after a thorough selection process, Evans Senior

Investments sold its Legacy Village of Layton community to an undisclosed buyer for $68

million. The $68 million purchase price is the highest ever for a senior housing community in

Utah and at $276,423 per unit, the per unit price also set a record in the state as well. With 108

independent living units, 24 memory care units, 74 assisted living units and 40 skilled nursing

and rehab units, Legacy Village is one of the larger communities in the area and its revenue

potential is significant because of this. In order to take advantage of the facility’s size and

maximize profits, the buyer has enlisted a regional operator to manage the property and it is

confident that it has skills and expertise that are necessary to run the community effectively

and efficiently.

These acquisitions reflect the strong demand for senior housing assets and this should

continue for some time because of the industry’s favorable demographics and today’s low

interest rate environment. Accordingly, providers and investors who are seeking capital to

purchase senior living properties should contact the Chicago-based financing firm Cambridge

Realty Capital to learn more about the different financing options that it offers for acquisitions,

sale/leasebacks, joint ventures and other purposes as well.

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