Cushman & Wakefield Senior Housing Capital Markets Group, exclusively advising LCB Senior Living and their joint venture capital partner, has arranged the recapitalization of a portfolio of four Class A senior housing communities totaling 289 independent living, assisted living and memory care units located in Massachusetts, Connecticut and Rhode Island. The portfolio has been acquired by a new joint venture between LCB and Harrison Street Real Estate Capital LLC (“Harrison Street”), one of the largest real estate investment firms dedicated to the Education, Healthcare and Storage sectors. Harrison Street’s senior housing portfolio currently consists of 23,000 senior housing units across the United States.
The four assets include full continuum ground-up construction properties located in Ipswich, MA (built in 2014); in South Windsor, CT (built in 2015); in Avon, CT (built in 2015); and a standalone memory care community located in Lincoln, RI (built in 2009), which LCB acquired in 2013 and extensively renovated. The IL/AL/MC communities are fully licensed, market to independent residents and allow for resident transitions to higher care levels without moving apartments. The extensive amenities in each community include bistros, all-day restaurant-style dining, libraries, beauty salons and expansive outdoor amenity spaces. The communities have each become leaders in their respective markets and offer the newest and highest-quality senior living in each location.
The Cushman & Wakefield team who led the transaction included Vice Chairman Rick Swartz, Executive Director Jay Wagner and Director Jim Dooley, along with Associate Caryn Donahue. In addition to the sale, Cushman & Wakefield arranged acquisition financing on behalf of the buyer with PGIM Real Estate Finance that closed concurrently with the recapitalization. The financing holds a 10-year term that is interest-only through maturity.
“Both the sale process and debt financing were highly competitive among investors and lenders attracted to the high-barrier locations, best-in-class purpose-built construction and superior management,” said Wagner.
“This was a great opportunity for Harrison Street to enter the New England market and form a relationship with LCB, which we anticipate will grow substantially over time,” added Swartz.
Cushman & Wakefield’s Boston office provides a complete suite of commercial real estate services for the entire lifecycle of properties and portfolios.
About LCB Senior Living
LCB Senior Living (www.lcbseniorliving.com) is one of the most reputable New England developers and operators of independent, assisted and memory care housing for seniors. LCB has established a robust portfolio of senior housing communities throughout New England by developing and acquiring in prime locations with a diverse collection of equity partners, and has now expanded into the Mid-Atlantic region. Since it recapitalized its organization in early 2013, LCB has broken ground on 16 properties, of which thirteen have delivered, and has acquired an additional seven properties across five New England states as well as Pennsylvania. Total project capitalization is currently over $670 million. Currently, LCB operates 1,717 senior housing beds with an additional 286 currently under construction.
About Harrison Street Real Estate Capital
Harrison Street Real Estate Capital LLC is one of the leading real estate investment management firms exclusively focused on the Education, Healthcare and Storage sectors. The firm has created a series of differentiated investment products across multiple risk/return strategies. Headquartered in Chicago with an office in London, the firm employs a 125-person team and has approximately $15.6 billion in assets under management. For more information, please visit www.harrisonst.com.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.