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Sep. 13, 2013

TODAY’S DEALS: Griffin-American Acquires 44 Seniors Housing Properties in the U.K.

Newport Beach, Calif.—Griffin-American Healthcare REIT II has acquired a 44-facility portfolio of senior housing and care facilities located in England, Scotland and the Channel Island of Jersey. The assets were picked up from Myriad Healthcare Limited for approximately $472.2 million. The majority of the portfolio is in England’s South East region, primarily in the Home Counties and around Greater London. Six properties are located in Scotland north of Edinburg, while two are located in Jersey.

“With the completion of this acquisition, Griffin-American Healthcare REIT II has added a significant international presence to our already extensive national footprint,” says Jeff Hanson, chairman and chief executive officer. “Griffin-American Healthcare REIT II is now one of the biggest diversified healthcare REITs in the country in terms of geography, revenue sources and asset types with a portfolio valued at approximately $2.1 billion, based on aggregate acquisition price.”

Under terms of the transaction, the U.K. portfolio is leased to Myriad Healthcare Limited, operating as Caring Homes, under 35-year absolute net leases with annual rent escalations. Further, the leases are cross-defaulted among all 44 properties and guaranteed by Myriad Healthcare’s parent company. Additional terms on the deal call for the REIT to provide construction financing for new senior housing developments that it will acquire upon the facilities reaching minimum required occupancy, imputed rent coverage ratios and due diligence. At that time, the developments will be acquired by the REIT at construction cost, and then leased back to Myriad.

Landmark Apartments Trust of America Acquires Two Apartment Assets

Greensboro, N.C. & Nashville, Tenn.—Landmark Apartment Trust of America has acquired two multifamily properties in two separate transactions for a combined purchase price of $37 million. The communities, located in Greensboro, N.C. and Nashville, Tenn., have an aggregate 600 units that are 95 percent occupied.

“Our entry into the Greensboro market and expansion in Nashville reflect a natural continuation of our strategy to bolster our presence in high growth markets in the Southern United States,” says Stanley Olander, chief executive officer of Landmark Apartment Trust of America. “We look forward to capitalizing on the favorable long-term economic and demographic fundamentals in both markets, and leveraging our proven operating platform to unlock additional value at the asset level.”

In the first transaction, LATA acquired Landmark at Battleground Park, a 240-unit apartment community located in Greensboro, N.C. Formerly known as Mission Battleground Park, the property is located at 3520 Drawbridge Parkway and was built in 1990.

In the second transaction, LATA acquired Landmark at Glenview Reserve, a 360-unit apartment community located in Nashville, Tenn. Formerly known as Mission Briley Parkway, the property is located at 100 Arbor Creek Boulevard and was built in 1985.

Amenities at each property include a fitness center, swimming pool and tennis court. Landmark at Glenview Reserve also features a hot tub, basketball court and volleyball court, while Landmark at Battleground Park boasts a community clubhouse and playground. LATA plans to enhance each property by implementing a comprehensive renovation program to update the apartment homes at each property.

Washington Property Co. obtains $75M permanent loan for new project

Silver Spring, Md.—Washington Property Company (WPC) of Bethesda, Md., has obtained permanent financing for its 295-unit luxury apartment building Solaire-Metro in Silver Spring, Md. ING Investment Management LLC provided a $75 million 20-year loan for the property at 1150 Ripley Street, which is now 95 percent leased. Walker & Dunlop and Sage Capital represented WPC in the transaction.

“Just 16 months after completing our first apartment tower in downtown Silver Spring, we have leased 95 percent of the building and obtained $75 million in permanent financing,” says Charles K. Nulsen, III, president, Washington Property Co. “Solaire is simply the most Metro-centric address in Silver Spring. From Solaire’s front door, residents enjoy a three-minute traffic-free walk to the Metro platform. From the station, it’s just a 15 minute ride to employment centers in NoMa and Capitol Hill in downtown Washington.”

Just four months ago, WPC announced plans to expand its footprint in Silver Spring’s rapidly transforming Ripley District with its acquisition of three contiguous developable land parcels from Bethel World Outreach Ministries International. The company is currently evaluating different uses for the site including hotel, office and/or residential development.

In addition, WPC has been selected by Montgomery County to redevelop the Shepherd’s Table/Progress Place parcel just south of Solaire-Metro. This project, still in the early planning phases, would provide a new, expanded facility offering services to Silver Spring’s low-income and homeless population along with a second Solaire-Metro residential tower to include approximately 380 luxury apartments.

WPC, in partnership with Montgomery County, is leading the Ripley District’s transformation to a vibrant transit-oriented neighborhood with an exciting new mix of dining, shopping and entertainment options along with a variety of housing options, work places and green spaces.

“We look forward to working with Montgomery County to continue our investment in the successful revitalization of the Ripley District, which could eventually be home to up to 3,000 people with over 2 million square feet of development,” Nulsen commented.

Just north of Solaire-Metro, Home Properties is nearing completion of Eleven55 Ripley, with 379 rental apartments in a 21-story tower and a smaller building. Eleven55 and Solaire-Metro together will house more than 1,100 people.

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