DALLAS, TX - September 4, 2014 - HFF announced today that it has closed the sale of a 12-property SunnyBrook seniors housing portfolio totaling 680 units located across Iowa.
HFF marketed the property on behalf of the seller, SunnyBrook Senior Living. American Realty Capital Healthcare Trust II purchased the offering for $164.175 million, which represents a cap rate near 7.2 percent based upon 2014 pro forma financials. A 13th asset is currently under contract and will close at a later date.
The assets in the portfolio were all constructed between 2003 and 2009, with a unit mix of 544 assisted living units and 136 memory care units featuring studio, one- and two-bedroom floor plans. The properties are located in Burlington, Carroll, Fairfield, Fort Madison, Mt. Pleasant, Muscatine, Cedar Rapids, Clinton, Des Moines, Independence, Ottumwa and Tipton. The portfolio had an average occupancy of 93 percent at the time of close.
The HFF team representing the seller was led by managing director Ryan Maconachy and director Chad Lavender.
The SunnyBrook Portfolio was represented by the legal team of Whit Roberts and Janis Loegering in the Dallas office of Locke Lord LLP. ARC was represented by Taylor Pancake in the Orlando office of law firm, Foley & Lardner.
"The SunnyBrook Portfolio represented a great opportunity for ARC and their new operating partners for this portfolio, Provision Living and Frontier Management, each bringing significant operating experience in the region. The HFF Seniors Housing Team was very pleased with the execution of the transaction by the teams at SunnyBrook and ARC, which was completed over a compressed timeline," said Maconachy.
CEO and majority owner of SunnyBrook, James T. Elliott IV, moved his family to Iowa from New York City 10 years ago to pursue his vision of creating the best possible lifestyle for Iowa seniors in small and mid-size communities. Mr. Elliott developed the properties from the ground-up and then assumed a hands-on role with the management of SunnyBrook, making it known that the staff of each community should be talented and caring individuals working as a team to provide the care of residents. Under Mr. Elliott`s leadership, SunnyBrook enjoyed great success with quality services, strong occupancy and deep ties to each community.
American Realty Capital Healthcare Trust II ("ARC") is a full-service investment advisory firm sponsoring a series of investment programs with an emphasis on publicly registered non-traded real estate offerings. ARC was formed by Nicholas S. Schorsch and William M. Kahane with the vision of building a portfolio of companies focusing on sector specific and what we believe are best of class investment solutions, independently governed and distributed to retail investors over a unique multi-product wholesale distribution platform known as Realty Capital Securities. For more information please visit www.thehealthcareREIT2.com.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.
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Source: HFF, Inc. via GlobeNewswire