Brookdale, HCP Enter Massive Senior Housing Buy

Brookdale Senior Living and HCP enter an $849 million purchase agreement; Investcorp ramps up its multifamily acquisition activity; and the Largo Group of Cos. arranges financing for manufactured housing throughout the Northeast.

Nashville, Tenn. & Irvine, Calif.—Brookdale Senior Living Inc. and HCP Inc. have entered an agreement to buy a portfolio of 35 properties from Chartwell Retirement Residences. The 5,025 units are valued at $849 million. A RIDEA (REIT Investment Diversification and Empowerment Act) joint venture structure will be used to acquire the portfolio, with HCP and Brookdale owning 90 percent and 10 percent, respectively. Brookdale has operated these communities since 2011 after its acquisition of Horizon Bay, and will continue to manage the communities post-closing under a long-term management agreement.

Located in eight states with concentrations in Florida, Texas and Colorado, the Portfolio is comprised of 33 senior housing properties representing 4,792 units with a diversified care mix. The joint venture is also acquiring leasehold interests in two communities, which properties are wholly-owned by HCP, representing 233 units including purchase option rights exercisable in 2017. Currently 89 percent occupied with an average monthly rate of $3,425, the Portfolio is expected to be acquired unencumbered by third party debt, and is projected to generate a first year cash yield of approximately 6.6 percent.

Investcorp ramps up multifamily acquisition activity

Orlando, San Diego, Baltimore & D.C.—Investcorp today announced that it has acquired four-property multifamily portfolio valued at $300 million. The assets are located in Washington, D.C.; Orlando; San Diego; and Baltimore. Together the four properties total more than 2.1 million square feet with approximately 1,900 apartment and student housing units.

Orion on Orpington

Orion on Orpington

  • Arcadian is a garden-style townhome property in Silver Spring, Md., part of the Washington, D.C., metro area.
  • Orion on Orpington is a 156-unit, 634-bed student housing property serving the University of Central Florida in Orlando.
  • Waterleaf Apartment Complex is a 456-unit apartment community located in Vista, Calif., a northern suburb of San Diego.
  • Fairways at Townson is a 15-story high rise and 35 three-story garden-style buildings in the submarket of Baltimore-Columbia-Townson, north of downtown Baltimore.

Largo arranges financing for manufactured housing throughout Northeast

Buffalo, N.Y.—Jack Phillips, principal, and Brett Wymer, account executive of the Largo Group of Cos., secured a total of $33 million in financing for six manufactured housing communities situated throughout the northeast.

Phillips arranged $16.65 million in financing for four manufactured housing communities totaling 565 pads.

The first property is a 260-pad, four-star park located in Raleigh, N.C. The project is situated two miles outside of the Interstate 440 loop with immediate access to numerous area amenities. The 80-acre development includes playgrounds and walking paths, as well as lakes and ponds. Phillips secured a five-year, fixed-rate permanent first mortgage with 30-year amortization.

The second property is a 103-pad manufactured housing community located just outside of Ithaca, N.Y., not far from Ithaca College and Cornell University. Phillips arranged a 10-year, fixed rate, permanent first mortgage with 30-year amortization for the property.

Additionally, Phillips secured a 10-year, fixed-rate permanent first mortgage with 30-year amortization for two manufactured housing communities totaling 202 pads. The two properties are located in Delaware (Chesapeake Bay area) and upstate New York (Rochester).

Wymer secured $16.5 million in financing for two manufactured housing communities totaling 827 pads.

The first property is a 599 pad, age-restricted, gated mobile home park located in Avon Park, Fla. The subject features numerous amenities including a full service 18-hole private golf course and access to Lake Denton. The second property is a 225 pad community located in Manchester (Rochester), N.Y. Wymer arranged a fixed rate, non-recourse, 10-year deal with 25-year amortization for the borrower.