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Harrison Street, Engel Burman Group to Buy Back Bristal Assisted Living Chain

Harrison Street Real Estate Capital LLC, a Chicago-based real estate private equity firm, and The Engel Burman Group have entered into a joint purchase and sale agreement with Chartwell Seniors Housing REIT and ING Real Estate Australia Pty to acquire six Bristal assisted living communities consisting of 937 beds, located throughout Nassau County, N.Y.

Engel Burman originally founded the Bristal Assisted Living brand in 1999 as a privately owned business. The six communities in contract are properties that Engel Burman built, managed and owned between 1999 and 2007, prior to selling them to the Chartwell and ING. Since that sale, Engel Burman has continued to successfully manage the properties and will continue to manage the communities on an ongoing basis for the Harrison/Engel Burman joint venture post-closing.

Further, Engel Burman opened a seventh Bristal Assisted Living community in East Northport in 2012. This community is approaching stabilization and will be part of the joint venture with Harrison Street Real Estate Capital. In addition, Engel Burman is currently constructing three additional communities, two in Westchester, N.Y. and one in Bergen County, N.J. Engel Burman also controls approximately six parcels of land which are in various stages of development and are expected to break ground within the next one to two years. Harrison Street and Engel Burman plan to double the size of the Bristal portfolio by 2014 and continue to grow the number of communities throughout the tri-state region thereafter.

"This strategically situates our company for future regional growth utilizing the platform we created in the late 1990s,” Engel Burman President Jan Burman said in a statement. “Owning these assets once again while aligning ourselves with a strong institutional partner who shares our vision for growth ensures that The Bristal will remain the benchmark for excellence in assisted living."

Chartwell owned a 50 percent stake in five of the properties. The purchase price for those five assets amounted to $290.0 million, including the assumption of $199.6 million in mortgage debt secured by the assets. The balance of the purchase price will be paid in cash.

"The sale of the Bristal Portfolio is in line with our strategic priority to focus our efforts and investments more on the strong and stable Canadian market where we have an established strong presence in four key provinces, full operating control of our properties, and where we have a first-hand knowledge and understanding of the markets in which we operate," Chartwell President & CEO Brent Binions said in a statement. "The Bristal Portfolio has been a strong performer since Chartwell acquired it in 2007. We would like to thank The Engel Burman Group for their outstanding work over the past five years."

Health Care REIT, Chartwell Complete Acquisition

Health Care REIT Inc. completed the acquisition with Chartwell Seniors Housing REIT of 42 seniors housing and care communities in Canadian markets, which was previously announced on February 15, 2012.

Thirty-nine of the properties are owned in 50/50 joint venture between the two companies. Health Care REIT wholly owns the remaining three properties. Chartwell will manage the communities under an incentive-based management contract. The portfolio, comprised primarily of independent living residences, closed on May 1st. Based on the USD to CAD exchange rate of .9879 on April 30th, the purchase price was USD $936.5 million. The company’s share of the purchase price was USD $509.5 million.

CNL Acquires Four Assets in $79.8M Deal

CNL Lifestyle Properties Inc. acquired four senior housing communities from affiliates of Solomon Holdings III Dogwood Four LLC for $79.8 million, bringing the total number of senior housing properties the REIT owns to 56.

The communities total 347 units, comprised of 85 independent living units, 186 assisted living units and 76 memory care units, in four communities located in the Greater Atlanta area. Solomon’s affiliated management company, Trinity Lifestyles Management II LLC, will continue to manage the communities under an agreement with CNL Lifestyle Properties.

The four communities CNL Lifestyle Properties has purchased are Dogwood Forest of Alpharetta in Alpharetta, Ga., Dogwood Forest of Eagles Landing in Stockbridge, Ga., Dogwood Forest of Fayetteville in Fayetteville, Ga., and Dogwood Forest of Gainesville in Gainesville, Ga.

Dogwood Forest was founded in 2005 and provides assisted living, memory care, adult day services, and post-operative and short-term care to senior residents.

Senior Community Opens in Riverside, Calif.

WNC, a national investor in community renewal and affordable housing projects, in partnership with USA Properties Fund, has announced the grand opening of Vintage at Snowberry Apartment Homes. The $32-million 224-unit community will address the extensive need for affordable housing among seniors in Riverside County. WNC provided $9 million in Low Income Housing Tax Credits (LIHTC) financing for the project, which was developed by USA Properties Fund.

“There remains a dearth of affordable housing options for Riverside County’s large community of senior citizens,” WNC CEO Will Cooper Jr. said in a statement. “This project was developed and leased up in an unprecedented 16 months and represents an important milestone in filling this substantial void.”

The 10-acre property features one- and two-bedroom apartment homes in five distinct floor plans. Units will include fully furnished kitchens with energy efficient appliances, full-size washer/dryer hook-ups and walk-in closets. In addition, amenities include a clubhouse, fitness area, pool and spa area, business center, laundry facilities and covered parking

The Vintage at Snowberry celebrated its grand opening and ribbon cutting on May 2 with U.S. Congressman Ken Calvert and Riverside City Councilmember Chris MacArthur on hand.

Financing partners for the project included WNC, The City of Riverside, Riverside County Department of Mental Health, Wells Fargo Bank and Citi Community Capital.

Debartolo, Providence One Break Ground on Florida Facility

DeBartolo Development LLC and Providence One Partners LLC began construction today on a $24 million, 173‐unit independent living Facility named Providence Independence in Wildwood, Fla.

Adjacent to The Villages, one of the largest age‐restricted communities in the U.S., Providence Independence will be situated on approximately 7 acres. The full‐service rental community for seniors aged 55 and older will be part of a 42‐acre master planned, multi‐use coordinated development community. It is expected to open in April 2013.

The Villages is a master‐planned age‐restricted retirement community with a population of 89,000 as of September 2010, according to The Villages reports.

“The population in this primary market area is expected to continue to grow at record rates resulting in an increased and unmet demand for independent living rental communities,” DeBartolo President & COO Edward Kobel said in a statement. “We are excited to be in this real estate sector, and given the current demographics this is the right time to grow our presence in this area. The DeBartolo organization has always operated from a family approach and providing seniors a first class living opportunity like Providence Independence is truly an extension of our family.”

Upon completion, Providence Independence will include 123,838 sq. ft. of living space (an average of 716 sq. ft. per unit) within one three‐story building.

Amenities will encompass more than 55,000 sq. ft. on multiple floors and feature a business center, coffee café/grill, fitness facility with senior friendly equipment, full‐service restaurant with dancing floor, music, and bar areas, card room with billiards, barber/hair salon, theatre with full gaming area, chapel, central living rooms, craft & sewing rooms, 24 hour secured access and an outdoor exercise lap pool with surrounding sundeck and cabanas.

HFF Arranges $17.4M Refinancing for L.A. Community

HFF arranged a $17.4 million refinancing for Nantucket Creek, a 172-unit seniors housing community in Chatsworth, Calif.

HFF worked on behalf of Universe Holdings Development Co. to secure the 10-year, 3.88 percent, fixed-rate loan through Freddie Mac. The financing replaces the property’s senior note that was originated in 2004 when Universe Holdings acquired the property from the original developer.

The loan will be securitized through Freddie Mac’s CME Program and HFF will service the loan through its Freddie Mac Program Plus Seller/Servicer program. In a separate transaction, existing mezzanine participating debt was paid off and Universe Holdings now owns the property outright.

Nantucket Creek in northwest San Fernando Valley in greater Los Angeles. The 98.5-percent leased property is situated on 13.53 acres of land and has one-bedroom, one-bath units throughout. Community amenities include gated access, recreation room, clubhouse, library, fitness center, swimming pool, billiards room, shuffle board court and tennis courts.

The HFF team representing Universe Holdings Development Company was led by director Charles Halladay.

NHI to Purchase Texas Facility for $13.4M

National Health Investors Inc. exercised an option to purchase and lease a new, stabilized skilled nursing facility located in Texas for a purchase price of $13.4 million. The facility opened at the end of 2010 with 125 beds and is operated by affiliates of Legend Healthcare LLC. The transaction is expected to close within the next thirty days and will be funded from available cash and from borrowings on NHI’s revolving credit facility.

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