Massachusetts firm buys Shelby senior housing sites
Birmingham Business Journal - by Jimmy DeButts Staff
A Massachusetts real estate investment firm has purchased two area assisted living facilities for $14.1 million after waiting a year for federal approval.
Senior Housing Properties Trust closed on its deal with Birmingham’s Paragon Assisted Living LLC on Aug. 1 to buy Lake View Estates Assisted Living and Memory Care and Ashton Gables in Riverchase. The deal was announced last summer but it could not be finalized without Department of Housing and Urban Development approval.
Five Star Quality Care Inc. is a spinoff from Senior Housing which operates the investment firm’s facilities. Their corporate offices are located in the same building in Newton, Mass.
Tim Bonang, director of investor relations and senior housing for Five Star, said the two properties were attractive because of their historic financial success and their regional proximity to other Senior Housing facilities. “It made sense from that perspective,” Bonang said.
Lake View Estates is located on Valleydale Road. Ashton Gables is on Parkway Lake Drive in Hoover. Senior Housing paid $7.8 million for 64-bed Lake View and $6.2 million for 48-bed Ashton Gables. Five Star paid $890,000 for developable land adjacent to one of the properties for potential future expansion, Bonang said.
Senior Housing will own the properties and lease them to Five Star until 2024. In a recent Securities and Exchange Commission filing, Senior Housing said rent under the Five Star lease was increased by $1.1 million for the two local properties after their acquisition.
Jacksonville State University Finance Professor Ronnie Clayton said facilities that cater to the elderly are potentially lucrative as the aging baby boomer generation requires more care. Clayton said Southern states outside of Florida are seeing an infusion of retirees from the North.
Jefferson and Shelby Counties fit those criteria and are in close proximity to numerous acute care hospitals.
“Nursing homes are going to be in more and more demand,” Clayton said. “There is an impetus in getting into that market.”
jdebutts@bizjournals.com | (205) 443-5628
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