upstatebusinessjournal.com
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
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Cascades Verdae, Summit Hills part of $476M purchase SHERRY JACKSON | STAFF sjackson@communityjournals.com @SJackson_CJ National Health Investors, a Murfreesboro, Tenn., senior housing and medical real estate investment company, announced this week it intends to acquire eight communities for $476 million, including the Cascades Verdae retirement community in Greenville and Summit Hills in Spartanburg. The eight communities are located across North Carolina, Florida, Georgia and South Carolina. A ninth property owned by Senior Living Communities is not part of the deal, as financing is with an Orlando, Fla., partner. NHI specializes in sale-leaseback, joint venture, mortgages and mezzanine financing of need-driven and discretionary senior housing and medical investments, according to a statement issued by the company. NHI’s portfolio consists of independent, assisted-living and memory-care communities, continuing-care retirement communities, skilled nursing facilities and specialty hospitals. NHI’s agreement for the eight communities is a definitive asset purchase agreement.
Following the closing of the acquisition, the eight communities will be leased back with a 15-year master lease and will continue to be managed by Senior Living Communities, headquartered in Charlotte, which currently owns all the communities. The lease equates to an initial gross cash yield of 6.5 percent of the purchase price and has annual escalators of 4 percent in years two through four and annual escalators thereafter of 3 percent. The eight communities’ total 1,671 units have an average age of 12 years and have an average occupancy rate of 85.4 percent for the three months ended Oct. 31, 2014. “NHI’s agreement to acquire a portfolio that includes high-end communities strengthens our
THE EIGHT COMMUNITIES NHI PLANS TO ACQUIRE: Property 1 Brightwater 2 Lakes at Litchfield 3 Cascades at Verdae 4 Summit Hills 5 Homestead Hills 6 RidgeCrest 7 Marsh’s Edge 8 Osprey Village
Units 229 208 315 225 248 84 192 170
Market Myrtle Beach, S.C. Pawleys Island, S.C. Greenville, S.C. Spartanburg, S.C. Winston-Salem, N.C. Mt. Airy, N.C. St. Simons Island, Ga Amelia Island, Fla
portfolio by further diversifying our sources of rental income by operator, geography, property type and payor source while significantly reducing our exposure to government reimbursement,” said Justin Hutchens, NHI’s president and CEO. NHI also expects to provide a $15 million working capital line of credit to Senior Living Communities that will be used to finance construction projects within the Senior Living Communities portfolio, including building additional units at several of the communities. A second phase of the Cascades Verdae is already underway with land being cleared to make room for 23 additional cottage lots. Deposits have already been received on all cottages and construction is expected to begin April 2015, said McSwain Bell, vice president of development and procurement for Senior Living Communities. A sixth apartment building with 40 additional apartments is also planned at Cascades Verdae and is currently in the pre-sales stage. Bell said that deposits have been received on 50 percent of those units and construction is expected to being summer 2015. The acquisition is expected to close by Dec. 31, 2014.
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Second spec industrial building planned for Greer
PROJECT PARTNERS GENERAL CONTRACTOR: Harper Corporation ARCHITECT: MCA Architecture CIVIL ENGINEERING: Arbor Engineering DEVELOPER: Liberty Property Trust
Development has begun on a second industrial spec building at the Caliber Ridge Industrial Park in Greer. The 156,000-square-foot warehouse at 130 Caliber Ridge Drive, across from the BMW Manufacturing plant, is expected to be ready for occupancy April 2015. “We obviously are very excited about Liberty Property Trust expanding its presence in the Caliber Ridge Industrial Park, which is attractive to tenants seeking a vibrant location and one that offers a prime Upstate location convenient to multiple transportation options,” said Rick Danner, mayor of Greer. This will be the fourth industrial building built by Liberty Property Trust at Caliber Ridge. Earlier
this year, Liberty confirmed three additional buildings would be developed. The first, 110 Caliber Ridge Drive, totals 156,000 square feet and was completed in February 2014. It is 100 percent leased to two tenants. Two more, 120 and 140 Caliber Ridge Drive, are scheduled for completion by the end of this year, with three tenants pre-leasing 249,600 square feet of the 312,000 total square feet. “We continue to invest in the Greenville-Spartanburg market through projects such as the development of 130 Caliber Ridge Drive. Our recent development and acquisition activity have brought our Carolinas portfolio to approximately 7.5 million square feet across North and South Carolina,” said Massie Flippin, vice president and city manager for Liberty’s Carolinas region. “Tenant demand in the market is solid and we look forward to accommodating our customers’ future growth.” With the completion of 130 Caliber Ridge Drive, Liberty’s industrial portfolio in the GreenvilleSpartanburg market will total 1.6 million square feet. Liberty declined to put a dollar figure on the projects. In addition to the development projects, Liberty acquired a 90,000-square-foot warehouse facility at 25 Brookfield Oaks Drive in Mauldin in January of 2014. That building is 100 percent leased to three tenants.
Magnolia Park sold for more than $80M The Magnolia Park shopping center on Woodruff Road has been sold for in excess of $80 million dollars. Palm Beach, Fla.-based Menin Development sold the 38-acre shopping center to Sioux Falls, South Dakota-based Midland National Life Insurance Company. The paperwork was recorded in Greenville County on Nov. 21. The shopping center purchase does not include Costco and Rooms to Go, which were already previously owned by other entities, said a source involved in the deal. Nor does it include the strip of buildings that include Old Navy, Sears, The Christmas Tree Shoppes and Bed, Bath and Beyond. Construction continues on additional retail and restaurants at the center. In November, Marc Yavinsky, executive vice president for Menin Development, said leasing at Magnolia Park was down to the last 5 percent or 20,000 square feet of space. Attempts to contact both Menin Development and Midland were unsuccessful as of press time.