In addition to the major NorthStar acquisition we discussed yesterday, a number of other senior housing acquisitions have recently taken place that demonstrate the strong demand for these assets and the desire of many different parties to own them. These acquisitions are taking place across the country and are being driven by low interest rates and increased demand for senior housing services. Industry participants who wish to take advantage of this situation by purchasing additional senior housing properties, should continue to look toCambridge Realty Capital and the different financing options that it offers for acquisitions, joint ventures, sale/leasebacks, and other purposes as well.
Acquisitions in the Midwest
In Ohio, the long-term care provider Diversicare Healthcare Services recently announced that it has purchased the operations of two senior housing properties that it projects will generate $9 million in annual revenues between them. The first property is a 142-bed skilled nursing facility in Avon, Ohio and the second property is a 42-bed assisted living community in Ontario, Ohio. With this purchase, Diversicare now offers long-term care services to residents in 51 senior housing properties and has over 6,000 licensed beds. The company is excited about its strategy of expanding its reach through acquisitions and made this clear in a statement from its CEO, Kelly Gill.“We are pleased to announce the newest additions to our portfolio and the expansion of our footprint in Ohio. With the addition of these two facilities we have incorporated seven new centers into our portfolio this year. We look forward to working with the caregivers at these centers to provide the highest quality of care to our residents.”
Meanwhile in Colorado, Brookdale Senior Living, which just closed its purchase of Emeritus, continues to be aggressive in the market and has purchased the Denver real estate where it operates the senior living facility Heritage Club for $20 million. Brookdale has been operating the Heritage Club for many years and is expected to continue doing so.
Acquisitions in the Western States
In California, the Ensign Group, which has been an aggressive player in the senior housing market all year, recently announced that it has acquired Angeles Home Health Care in Los Angeles. Angeles will be operated by Ensign’s home health operating company, Cornerstone Healthcare Inc. and although Ensign expects Angeles to only generate mild profits for the company this year, it is still excited about the purchase as evidenced by a statement from its president and CEO, Christopher Christensen. “Expanding our service offerings to include home health reflects our strategic commitment to establishing the full continuum of post-acute care in the communities we serve.”
Meanwhile, over in Arizona and New Mexico, American Realty Healthcare Trust has purchased two assisted living communities for a total of $75 million. The Arizona facility, Woodmark of Sun City, is located in Sun City and the New Mexico property, Woodmark of Uptown, is located in Albuquerque. The management company Senior Lifestyle Corporation has been operating both facilities and will continue to do so going forward.
These are just a few of the transactions that are taking place each day in the industry that continue to demonstrate the attractiveness of senior housing assets. Moreover, analysts expect purchase activity to remain strong due to the improving economy and low interest rates. While these factors remain favorable, senior housing providers and others who are seeking capital to acquire additional assets for their portfolios should continue to look toCambridge Realty Capital for assistance in financing these transactions.
