According to recent reports, investments and acquisitions in senior housing continue to take place at a rapid clip as the year winds down. Investors are increasingly seeking out senior housing assets because of their positive track record in generating strong returns, and buyers of senior housing properties continue to take advantage of low interest rates to purchase them. Accordingly, while interest rates remain low, senior housing providers and investors who are seeking capital to invest in senior housing or to acquire additional properties for their portfolios should contact Cambridge Realty Capital to learn more about the many different financing options that it offers for acquisitions and other senior housing transactions as well.
A Major Investment in Senior Housing is Announced
Pennsylvania’s Public School Employees’ Retirement System recently announced that it will invest $100 million in senior housing through the Senior Housing Partnership Fund V, a new investment fund from Prudential Real Estate Investors. The Fund’s managers plan to diversify their holdings by property type, and anticipate acquiring a mix of assisted living, independent living, and memory care facilities within the Fund’s portfolio. They will also focus on for-profit, private-pay facilities, and expect the Fund to initially hold $500 million in assets. Most of those will be located in the U.S., but as much as 20 percent could be located in foreign countries. Lastly, the Fund will use a few different approaches to maximize returns. For example, in addition to making direct purchases of senior housing properties, the Fund’s managers plan to acquire existing communities through wholly-owned subsidiaries and joint ventures.
A Large Senior Housing Acquisition is Announced
Meanwhile in Texas, the Dallas-based private healthcare company Cornerstone Healthcare Group announced that it will purchase TrinityCare Senior Living’s operations for a total of $27 million in cash and assumed debt. Cornerstone Healthcare Group was founded in 1990 and operates over a dozen hospitals in the United States. Its hospitals specialize in treating patients with complex medical conditions who also need individualized acute care for a lengthy period of time. TrinityCare Senior Living is a diversified company that builds, owns, and operates assisted living communities, independent living communities, and memory care communities in Georgia, Tennessee, and Texas. Cornerstone’s management is extremely excited about its purchase of TrinityCare because the acquisition immediately expands Cornerstone’s service offerings and geographic reach. Cornerstone’s new senior living division will use the TrinityCare name and will be led by Donald Sapaugh, the founder of TrinityCare Senior Living.
The transactions discussed in this article are just a few of many that are taking place across the country as senior housing participants and outside investors continue to take advantage of a strong market and low interest rates to enhance their portfolios. This dynamic should continue into 2015, but could change markedly once the Federal Reserve raises interest rates.
