NIC MAP Shows Stable Growth in Seniors Housing Sector

The National Investment Center for the Seniors Housing & Care Industry (NIC) released its NIC MAP data for the second quarter of 2012.

According to NIC’s statistics, the average occupancy rate for senior housing properties rose 0.3 percentage points quarter-over-quarter and 0.9 percentage points year-over-year to 88.6 percent. The seniors housing occupancy rate is now 1.6 percentage points above its cyclical low of 87 percent recorded in the first quarter of 2010.

The occupancy rate for independent living properties rose 0.2 percentage points quarter-over-quarter to 88.5 percent and the occupancy rate for assisted living properties rose 0.3 percentage points to 88.7 percent. The average occupancy rate for independent living properties is now 1.7 percentage points above its cyclical low, while the occupancy rate for assisted living properties is 1.5 percentage points above its cyclical low.

“Occupancy is now at a four-year high and the supply-demand fundamentals suggest that the recovery will continue in the near term,” said Michael Hargrave, vice president of NIC MAP, in a statement.

Annual rent growth for seniors housing rose 0.4 percentage points compared to the second quarter of 2011, to 1.9 percent. The pace of annual rent growth is now at its highest level since the fourth quarter of 2009.

Annual absorption for seniors housing properties in the second quarter totaled 2.3 percent, up from 1.7 percent a year earlier. Inventory growth rate was 1.3 percent, up 20 basis points compared to a year earlier. Current construction as a share of existing inventory totaled 2.1 percent, flat with the quarter prior.

At the same time, the occupancy rate for nursing care facilities declined 0.3 percentage points quarter-over-quarter to 87.9 percent. Inventory growth was negative 0.3 percent. Private pay rents for the nursing care sector grew 3.1 percent year-over-year.

Sunrise Senior Living Refinances Assisted Living Section of Bethesda’s Fox Hill

Eagle Bank provided a $26 million loan to Sunrise Senior Living Inc. to refinance the assisted living section of the Fox Hill senior living community in Bethesda, Md. The loan features a three-year term and a 5.5 percent interest rate. As a result of the transaction, Sunrise has been released from its obligation to the prior mortgage lender to fund operating deficits.

In addition, Sunrise funded approximately $6 million on behalf of its joint venture, leading to a modification of joint venture terms. Return of Sunrise’s new funding will have priority over existing equity and the venture partner’s total return will be capped at its capital contribution of $6.5 million.

Adroit Development Opens Community for Low Income Seniors in California

The Central Valley Coalition for Affordable Housing, Adroit Development Inc. and KTGY Group Inc. opened Heritage Oaks Senior Apartments, a $10 million, 50-unit environmentally-friendly apartment community for low income seniors aged 55 and older in Oakdale, Calif.

The community features one- and two-bedroom units located in two Craftsman-inspired buildings. Rents at the property range from $483 to $787 per month, depending on the residents’ income. The apartments are meant to be affordable for working seniors who earn 30 percent to 60 percent of the median income in Stanislaus County. The complex provides such amenities as a community center with a great room, hobby and craft studios, theater, game room, gourmet kitchen, fitness center, technology center, learning center, a patio with a BBQ center and outdoor lounging areas.

Griffin Capital Net Lease REIT and Griffin-American Healthcare REIT II Integrate Sales Forces

Griffin Capital Securities, the distributor of Griffin Capital Net Lease REIT and Griffin-American Healthcare REIT II, announced the integration of the two previously separate sales forces dedicated to each respective REIT.

“When Griffin Capital Securities became the dealer manager for Griffin-American Healthcare REIT II, in order to maintain continuity and stability for both products following the transition we chose to maintain dedicated sales forces for a limited amount of time,” said Griffin Capital Corp. Chairman and CEO Kevin Shields in a statement. “In accordance with industry best practices, and to drive greater efficiency within our selling group, we have now integrated these teams into one of the most experienced, professional and effective sales forces in the industry.”

In January, 41 employees of Grubb & Ellis Capital Corp., the former dealer manager for Griffin-American Healthcare REIT II, joined Griffin Capital Securities. Griffin-American Healthcare REIT II transitioned its sponsorship from Grubb & Ellis to co-sponsorship by Griffin Capital Corp. and American Healthcare Investors on January 9, 2012.

AdCare Buys Georgia Nursing Facility for $8.24M

AdCare Health Systems bought Glenvue Health and Rehabilitation Center, a 160-bed, non-profit skilled nursing facility in Glennville, Ga., from Evans Memorial Hospital for $8.24 million or $51,500 per bed.

Glenvue Health and Rehabilitation Center currently features negative EBITDA and 64 percent occupancy rate. AdCare plans to add the facility to its existing Georgia portfolio of 13 properties and reposition it. The company financed the transaction with a traditional bank loan.

Bradley Clousing, of Senior Living Investment Brokerage Inc., represented the seller in the transaction.

Unit Sales Completed at Los Angeles’ Teramachi Homes

The RADCO Cos. completed sales of Teramachi Homes, a 127-unit luxury condominium community for residents 55 years of age and older in downtown Los Angeles. The homes sold for anywhere between $300,000 and mid-$500,000.

RADCO was tapped in February 2011 to reposition the $57-million development, which had stalled after the economic downturn, and sell the remaining 24 units at the property.

Teramachi Homes features one- and two-bedroom units with oversized balconies, storage closets, floor-to-ceiling windows and upgraded appliances. Amenities at the property include a fully-equipped gym with steam room, indoor/outdoor pools, private flower and vegetable planters, a multipurpose room with a full catering kitchen, a central Zen garden, 24-hourse security in the lobby, a parking garage and on-site hair salon and bookstore.

Principle Valuation Appoints Thomas J. Griffith Head of Seniors Housing Division

Principle Valuation LLC promoted Thomas J. Griffith to head of its seniors housing division. In his new position, Griffith will be responsible for all business development activity and project work for the team, which provides valuations and advisory services for seniors housing facilities.

Griffith has 10 years of experience in the appraisal industry. Prior to joining Principle Valuation, he worked at Wellspring Valuation.

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