Griffin-American Healthcare REIT III Completes $244 Million in Acquisitions
American Healthcare Investors, LLC and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT III, Inc., announced the real estate investment trust completed the acquisition of seven integrated senior health campuses and three medical office buildings for the aggregate purchase price of $178.6 million during the second quarter of 2016. The REIT previously acquired a portfolio of five skilled nursing facilities located in Massachusetts for approximately $65.5 million.
During the second quarter, the REIT acquired Trilogy’s real estate of seven previously leased, integrated senior health campuses totaling 836 beds, including 515 skilled nursing beds, 248 assisted living/memory care beds and 73 independent living units. The campuses are located throughout Indiana and Kentucky. The seven campuses were 90% occupied at the time of acquisition.
“As we work to conclude the build-out of the Griffin-American Healthcare REIT III portfolio, we seek to continue to add value with the addition of assets,” Danny Prosy, president, chief operating officer and one of the largest stockholders of the REIT, said in a statement. “With these latest acquisitions, our portfolio is now valued in excess of $2.7 billion, based on consolidated purchase price, and we continue to pursue our strategic plan for the REIT.”
The REIT also acquired three medical office buildings in Ohio, Missouri, and Georgia.
Grace Healthcare Exits Colorado Market
Grace Healthcare has completed its exit from the western market with the sale of its three remaining skilled nursing facilities (SNFs) in Colorado. The three properties, Paonia Care and Rehab Center, Grace Healthcare & Rehab of Glenwood Springs, and Pioneer Health Care Center were sold to a California-based investor for $15,300,000, or $67,700 per bed. The properties will be leased to an operator with a Colorado presence.
Evans Senior Investments (ESI), a senior housing investment firm that represents owners of seniors housing and SNFs across the nation, represented Grace Healthcare in the three transactions.
Paonia Care and Rehab Center has 60 beds in semi-private rooms across a 16,424-square foot, single story building. Grace Healthcare & Rehab of Glenwood Springs features 54 skilled nursing beds and 16 assisted living beds. The Pioneer Health Care Center features 94 bed on 4.14 acres with private and semi-private rooms.
The transaction follows the sale of three other western properties for Grace Healthcare. Two California facilities and one Arizona facility were sold in June 2016. ESI represented Grace Healthcare in those sales.
Cornerstone to Acquire ACRE Capital Holdings
Cornerstone Real Estate Advisors, one of the world’s largest real estate-focused investment managers, will acquire ACRE Capital Holdings, LLC, the agency lending subsidiary of Ares Commercial Real Estate Corporation (NYSE: ACRE) for $93 million. ACRE Capital Holdings originates and services multifamily residential mortgage loans, senior housing and health care facility loans through programs overseen by governmental agencies and sponsored entities.
The transaction is expected to close as early as the third quarter of 2016, pending regulatory approvals. ACRE is one of only 19 lenders that hold licenses with all three government lending agencies—Fannie Mae, Freddie Mac and the Federal Housing Administration. ACRE is based in Plano, Texas, and operates seven national offices, with 106 employees, including 50 dedicated lending professionals. The company manages approximately $4.4 billion of unpaid principal balance of GSE and HUD loans, and is an S&P-rated primary servicer.
The acquisition expands Cornerstone’s commercial loan origination platform, nearly doubling the size of its multifamily loan portfolio from approximately $5 billion to $10 billion.
Kimberlite Group, LLC provided financial advice and Goodwin Procter LLP provided legal advice to Cornerstone. Proskaueh Rose LLP provided legal advice to Ares Commercial Real Estate Corporation.
Legacy Senior Living Acquires 10th Facility
Legacy Senior Living, a Cleveland, Tennessee-based developer and manager of senior care facilities, has acquired its 10th facility, located in Prattville, Alabama. Legacy renamed the 32-bed facility Harbor at Hickory Hill.
The company is planning to add 16 more units to the memory care facility and hire more staff. Legacy will also update the facility with new paint, carpet and decorations. The center was built in 1999 and has had several owners over the last 17 years.
The facility is Legacy’s 10th acquisition in the last decade. The company is also planning to build new facilities in Vero Beach, Florida, and Cleveland, Tennessee, and could add up to 20 more facilities over the next 10 years, according to co-founder Bryan Cook. Legacy has more than 300 employees with a presence in six states, including 30 employees absorbed from the latest acquisition.
Global Healthcare REIT Sells SNF in Georgia for $3.8 Million
Global Healthcare REIT, Inc., a real estate investment trust (REIT) that invests in health care properties, has sold a 71-bed skilled nursing facility (SNF) in Union Point, Georgia, for $3.8 million. The SNF was acquired by a former leaser operator of the facility.
Concurrently with the sale of the property, named Greene Pointe Healthcare Center, the REIT also executed a new 10-year operating lease covering the Goodwill Nursing Home located in Macon, Georgia. The lease operator is an affiliate of the Greene Pointe buyer. The Goodwill facility, which has been closed by Georgia regulators since January, is effective, though the term does not commence until and unless Georgia issues approvals to recertify and reopen the community. The new lease operator has committed to a minimum of $1 million to refurbish the property while awaiting such approvals.
The Ensign Group Acquires Kansas SNF
The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign group of skilled nursing, rehabilitative care services, home health care, hospice care, assisted living and urgent care companies, has acquired the operations and real estate of a skilled nursing facility in Kansas City, Kansas.
The acquisition of Riverbed Post Acute Rehabilitation, a 161-bed skilled nursing and 10-bed assisted living facility, was effective July 1, 2016.
The transaction brings Ensign’s portfolio to 207 health care facilities, including 35 of which are owned, 16 hospice agencies, 16 home health agencies, three home care businesses and 17 urgent care clinics across 14 states.
Birchwood Health Care Properties Completes Two Acquisitions
Birchwood Health Care Properties, LLC, a Chicago-based health care real estate private equity firm, has acquired a 64-unit memory care facility in Montgomery, Alabama, and a portfolio of four nursing homes, a hospice company and a home health company located in eastern Oklahoma.
The memory care facility was independently owned and operated by a local family for many years prior to the acquisition. The facility had approximately $3.1 million of revenue at the time of closing on June 16.
The eastern Oklahoma portfolio had been owned by a group of owner/operators for more than 20 years. The portfolio includes 361 nursing home beds and two ancillary companies which produce approximately $24 million of annual revenue. The portfolio closed on June 30.
The closings increase Birchwood’s portfolio to 18 facilities and two ancillary companies in five states with six operators. All but one of the company’s facilities were purchased in the last 15 months.
Written by Amy Baxter
The post Senior Housing Investments & Transactions: Griffin-American Healthcare REIT III appeared first on Senior Housing News.
