Category: Mergers/Acquisitions

CHICAGO, IL—JLL Capital Markets announced last week that it has closed the sale of and acquisition financing for the Oaks of Shorewood, a 101-unit luxury, age-restricted (55+) multi-housing community in Shorewood, WI.

Weidner Apartment Homes acquired the property. JLL worked on behalf of the new owner to originate a Fannie Mae loan. The loan will be serviced by JLL Real Estate Capital, LLC, a Fannie Mae DUS lender.

The four-story building offers a mix of one- and two-bedroom units averaging 1,115 square feet. Unit amenities include granite counters with large islands, maple cabinets, stainless steel appliances, in-unit washer and dryer, balconies and walk-in closets. The Oaks of Shorewood features 7,000 square feet of indoor amenities, including a game room with billiards, a fitness center, golf simulator with kegerator, library, business center and rentable entertaining room. In addition, the property has two outdoor courtyards with a lap pool and whirlpool, two outdoor kitchens, pickleball court, dog run, fire pit and access to the Oak Leaf Trail.

The community is located at 3900 Estabrook Pkwy. in the exclusive Village of Shorewood in the North Shore of Milwaukee, which is ranked the fifth “Best Place to Live in Wisconsin.” The Oaks of Shorewood is proximate to Lake Michigan and the Milwaukee River, Hubbard Park Beer Garden, the 50-acre Estabrook Park and Village’s main drive, which is known for eclectic boutiques and trendy restaurants. The affluent area is 10 minutes from downtown Milwaukee and boasts average home values of $425,000 and an average household income of $112,000. Furthermore, the Oaks of Shorewood is the only luxury community of its kind in the county, and benefits from the high barriers to entry in the North Shore submarket.

SAN JOSE, CA—Watermark Retirement Communities—the nation’s 10th-leading senior housing operator—has taken over operations for the Almaden at San Jose, CA, now known as The Watermark at Almaden. Under the agreement, Watermark is managing all aspects of the community’s operations, and introducing its signature programs, fine amenities, integrative wellness and exceptional dining experiences to create an innovative community where people thrive.

Watermark communities are known for their highly trained and caring associates, who put residents at the center of a lifestyle built on choice. With the addition of The Watermark at Almaden, Watermark now features nine senior living communities in northern California, 18 across the state and over 70 communities nationwide.

“For more than 30 years, we’ve been transforming what senior living can be. We believe every person deserves a life filled with purpose, possibility and joy,” said David Barnes, CEO and president of Watermark Retirement Communities. “We are looking forward to bringing our extraordinary care and service, led by a world-class team of hospitality professionals, to the San Jose community.”

The Watermark at Almaden will feature Watermark’s signature programs, such as the award-winning Watermark University program, which places residents’ experiences at the center of their classes, while also offering luxurious amenities such as a year-round outdoor pool and hot tub, spacious art studios, personal training and integrative wellness programs based on Watermark’s partnerships with premier universities, colleges of medicine and local nonprofits.

DALLAS, TX—12 Oaks Senior Living continues to expand its relationships and regional footprint with an additional 166-unit independent and assisted living community, The Inn at Los Patios, located in San Antonio, TX. 12 Oaks Senior Living, along with the San Antonio Community Development Council, Inc. (a local nonprofit), intends to complete a major renovation and upgrade to the community—while enhancing service offerings and programming, restoring this community to its original stature and splendor as one of the premier senior housing communities in San Antonio.

“We’re excited to provide this new direction and operational support alongside our partners, to enhance and advance the quality of life for residents and associates at this community,” said 12 Oaks Senior Living president, Greg Puklicz. “The 12 Oaks Senior Living mission has always been to help senior living communities thrive and provide the best quality of services and care for seniors and their families. Our mission will continue with the addition of this wonderful community.”

12 Oaks Senior Living has more than 30 years of experience providing senior living communities with highly effective and exceptional third-party management and consulting services. The regional management company oversees communities principally throughout Texas and Oklahoma.

“Three decades of experience can truly benefit this community and the people who call it home. We’re excited to bring our distinctive high-touch management model and unique programming to this community,” said Puklicz.

TOMBALL, TX—Castle Lanterra Active Adult, a division of Castle Lanterra (the New York-based national real estate investment firm), announced last week its third major acquisition in the active adult multifamily (55+) asset class, with the purchase of Laurel at Vintage Park in the Houston, TX suburb of Tomball. With this most recent acquisition, the firm has accumulated over $125 million of assets in the active adult sector during 2022. Castle Lanterra Active Adult acquired the residential community from Coastal Ridge.

This acquisition speaks to Castle Lanterra’s focus on strategically expanding and enhancing its platform in the active adult sector in targeted markets across the country. The firm made its foray into the active adult sector earlier this year with the acquisitions of Diamond Oaks Village in the Paradise Coast between Naples and Fort Myers, FL and Reserve at Lakeside in New York’s bucolic Hudson Valley.

“Laurel at Vintage Park provided us with the rare opportunity to purchase a recent vintage 55+ community with value-add potential in one of Houston’s most desirable live-work-play suburban neighborhoods,” said Frank Small, senior managing director and head of investments for Castle Lanterra Active Adult.

Built in 2014, Laurel at Vintage Park is a 120-unit residential community strategically positioned next to Vintage Park—northwest Houston’s premier destination for business, shopping, dining and entertainment. Community features include a resort-style pool with a sundeck, two-story clubhouse with a kitchen, fitness center, aerobic studio, coffee and wine bar, game and craft room, library, computer lounge with free Wi-Fi, outdoor covered seating areas, grilling stations, walking trail, pet park, elevator access, garage with covered parking and 24-hour emergency maintenance service. Homes boast 10 foot ceilings, kitchens with a pantry, granite countertops, stainless-steel appliances, washer and dryer, walk-in closets, breakfast bar, wood-style plank floors, ceiling fans and a private patio with a backyard for select units.

MORRISTOWN, NJ—JLL Capital Markets announced earlier this week that it has closed the $29.9 million sale of Royal Pines at Marlboro, an 89-unit 55+ multi-housing community in Englishtown, NJ.

JLL represented the seller—a joint venture between GRJ and Castellan Real Estate Partners—in the sale to F.M. Ferrari Investments.

Royal Pines at Marlboro comprises one- and two-bedroom units averaging 859 square feet. Although the property is restricted to residents 55 and above, 20% of the residents can be 35 and older. The apartments feature stainless steel appliances, wood floors throughout, oversized walk-in closets, in-unit washers and dryers and private patios/balconies. Community amenities include elevators, after-hours security, video-monitored entrances, outdoor grills, a community room, game room, gym with spa-like locker room, yoga studio, business center and library. The property was built in 2008 and is currently undergoing renovations to all units.

The community, which is located at 362 US-9, has convenient access to retail centers, including Whole Foods, ShopRite and Home Depot. Royal Pines at Marlboro is also near NJ-18, providing access throughout the state and region via the Garden State Parkway and interstates 95 and 287. In addition, the New Jersey Transit 139 bus route stops within walking distance of the property, offering residents public transportation to New York City. The community also benefits from the area’s strong demographics, with an average household income of $175,331 within a three-mile radius and a growing 55+ population, which is currently at 17,584 people within the same area.

The JLL Capital Markets investment sales advisory team representing the seller was led by Michael Oliver, Jose Cruz, J.B. Bruno, Steve Simonelli and Michael Zlotnick.

“We continue to see incredible demand from capital sources for multi-housing product in Monmouth County,” said Oliver. “The area has strengthening fundamentals, while it is completely underserved for rental housing.”

DALLAS, TX—12 Oaks Senior Living continues to expand its relationship with current clients to manage an additional assisted living and memory care community, Copper Canyon Memory Care & Transitional Assisted Living in Tucson, AZ. 12 Oaks Senior Living intends to expand and enhance the service offerings at this community, while restoring stability and planning for long-term growth. Copper Canyon augments four other senior living properties that 12 Oaks currently manages for the same ownership group.

“We’re excited to provide this new direction and operational support to advance the quality of life for residents and associates at this community,” said 12 Oaks Senior Living President Greg Puklicz. “The 12 Oaks Senior Living mission has always been to help senior living communities thrive and provide the best quality of care for seniors and their families. Our mission will continue with the addition of this community.”

12 Oaks Senior Living has more than 30 years of experience in providing senior living communities with highly effective and exceptional third-party management and consulting services. The regional management company oversees communities principally throughout Texas and Oklahoma. “Three decades of experience can truly benefit this community and the people who call it home,” Puklicz remarked. “We’re excited to bring our distinctive high-touch management model and unique programming to this community.”

IRVINE, CA—Asland Capital Partners, a private real estate investment firm specializing in multifamily and mixed-used investments; Fairstead, a purpose-driven, vertically-integrated real estate company; women- and minority-owned real estate platform iimpact Capital; global real estate manager Nuveen Real Estate; and Innovative Housing Opportunities (IHO) announced earlier this week the acquisition of Woodbridge Manor in Irvine, CA.

“Woodbridge Manor is significant to IHO because it was our organization’s first project and the first low-income housing complex ever created in Irvine,” said Rochelle Mills, president and CEO of IHO. “We are thrilled that these apartments will continue to serve in-need seniors, extending a legacy that IHO began in 1981.”

Woodbridge Manor consists of 165 one-bedroom apartments affordable to seniors earning up to 60% of the area median income—or a maximum of $59,040 per year. The complex is comprised of a trio of three-story buildings that were built from 1981 to 2003, all of which underwent a major rehabilitation in 2006. The community was purpose-built as affordable housing for residents at least 62 years old and those living with disabilities.

Set on more than four acres of land, the affordable residence features three community rooms, a computer lab, a fitness center and a regular shuttle bus service that takes residents to and from medical appointments. The property also includes a set of solar panels, which provides the complex with a clean, renewable energy source.

“We are committed to preserving affordable housing and creating a positive impact for our residents and the communities we serve through sustainable improvements and resident services,” said Pamela West, senior portfolio manager of impact investing for Nuveen Real Estate. “Woodbridge Manor represents a significant opportunity to do so in a high-demand area, and we expect this project to deliver significant impact locally.”

The acquisition of this affordable home for seniors grows Fairstead’s portfolio in California to nearly 1,000 units. As Fairstead continues to expand its footprint across the country, this news follows the company’s recent acquisition of the Kinneret Apartments in downtown Orlando, FL; a 950-unit affordable housing portfolio in Kentucky; and the Aurora Apartments in San Antonio, TX.

“Fairstead remains committed to preserving our nation’s critical affordable housing stock, and we are proud to advance our impact in California by adding Woodbridge Manor to our growing portfolio in partnership with Asland Capital Partners, iimpact and Nuveen,” said Jeffrey Goldberg, CEO of Fairstead. “Our seniors deserve to live in communities that offer the amenities, services and resources they need to live independently for as long as possible. By preserving the affordability of Woodbridge Manor, we are able to ensure its senior residents will have a stable, high-quality place to call home.”

Woodbridge Manor is Asland’s first acquisition in California and the company’s second investment in the senior housing sector, following the current development of 1940 Turnbull Ave. This 154-unit affordable residential property is designated for seniors aged 62 years and older, and is located in the Soundview neighborhood of The Bronx in New York. It is scheduled for delivery in the spring of 2024.

“Asland is excited to partner with Nuveen, Fairstead, iimpact and IHO to close this important transaction for the city of Irvine,” said James H. Simmons III, founder and CEO of Asland Capital Partners. “As a high-barrier-to-entry California city with less than 1,000 deeply affordable senior units, the preservation of affordability, rehabilitation and forward commitment to providing social services to Woodbridge Manor’s culturally diverse tenants is essential for the community and its residents.”

COSTA MESA, CA—The Mogharebi Group (TMG), on behalf of ROEM Development, has arranged the $41.25 million sale of a two-property, 118-unit senior affordable housing portfolio in San Jose, California.

Built in 2001 and 2003 by ROEM, Monte Vista Gardens Senior 1 and 2 have a total of 118 units across two residential buildings. Located at 2605 La Hacienda Ct. and 2600 Nuestra Castillo Ct.—a block apart from each other in northeast San Jose—the two- and three-story controlled-access senior complexes include a community center with a library and kitchen, a garden/courtyard, solar panels and laundry rooms.

“The Monte Vista Gardens Senior portfolio was a rare opportunity for the buyer to acquire high-quality assets in a sector supported by several strong demand drivers, including baby boomer demographics, the overall renter economy and the universal need for affordable housing,” said TMG Founder and President Alex Mogharebi, who (along with Executive Vice President Otto Ozen) brokered the transaction. “Despite rapidly rising interest rates, competition was very intense with many interested buyers, and the nearly $350,000 per unit achieved in this sale bears that out.”

With 10,000 baby boomers projected to reach retirement age every day through 2030, the demand for senior housing should remain strong. Volumes in the second half of 2021 approached record highs as more than 21,000 units were absorbed across U.S. primary markets, which include the San Francisco Bay Area and Silicon Valley, according to the National Investment Center for Seniors Housing & Care.

DALLAS, TX—JLL Capital Markets announced earlier this week that it has closed the sale of Quail Park of Granbury, a 75-unit independent living, assisted living and memory care community in Granbury, Texas, which is a growing suburb of Dallas-Fort Worth.

JLL represented the seller, Living Care Lifestyles, in the sale to Lloyd Jones LLC. Lloyd Jones Senior Living will operate the community going forward, under the name AVIVA Granbury. The sales price was not disclosed.

The community is comprised of two buildings, one offering independent living (41 units) and assisted living (15 units), and one dedicated to memory care (19 units). The community was in excess of 95% occupancy at closing. Units feature faux hardwood floors, full-size kitchens in independent living units and private patios. Community amenities include landscaped courtyards, a large auditorium, a bistro, dining rooms, and a variety of lounges and gathering areas.

The property has a nearly 30-acre site along Paluxy Highway, 40 miles southwest of downtown Fort Worth. Of the 30 acres, approximately 20 acres is available for future development. This was appealing to the buyer, who has plans to develop the 20 acres in the future.

The city of Granbury has become a popular destination for retirees, offering residents a full living experience with access to numerous dining and retail options offered in the historic downtown. The 65+ population within a five-mile radius of the property constitutes more than 25% of the total population, outpacing the national rate of 17%.

MECHANICSBURG, PA—Two thriving, faith-based providers of senior care services recently announced their intent to explore the possibility of joining forces. Mechanicsburg-based Messiah Lifeways and Chambersburg, Pennsylvania-based Menno Haven have entered into a memorandum of understanding to explore a possible affiliation.

“A combined organization would not only provide greater strength today, but would also foster additional possibilities for mission expansion at a pace greater than would be otherwise,” said Hugh Davis, president and CEO of Menno Haven. The organizations have strong missional and cultural alignment, are both rooted in the Anabaptist faith and have strong reputations for serving older adults throughout south central Pennsylvania.

“The unique attributes of each organization and geographic locations present additional opportunities for growth,” said Karl Brummer, president and CEO of Messiah Lifeways. “Our organizations’ founders have a history of bold decision-making, and exploring the opportunity to join forces with another like-minded, quality provider continues that legacy.”

A steering committee made up of executive leaders and board members from both of the organizations has been formed and due diligence has begun. As the relationship develops, additional information will be provided to residents, team members and other constituents over the upcoming months.