Opportunistic investment around Providence MSA will improve occupancy and operation
Cushman & Wakefield Senior Housing Capital Markets, acting as exclusive advisor to an institutional client, has arranged the sale of a Rhode Island portfolio of three value-add senior housing communities located outside of Providence, RI. The Portfolio consists of 371 units of independent living, assisted living and memory care with property locations in East Greenwich, Johnston, and East Providence. The portfolio was acquired by Capital Health Group, a leading national investor in senior housing communities based in Baltimore, Maryland. The transaction closed in early January 2019. Milestone Retirement Communities LLC, an affiliate of Capital Health Group, will take over operations at each community.
The three-property portfolio consists of Pocasset Bay, a 169-unit independent and assisted living community in Johnston, RI, East Bay, a 98-unit assisted living and memory care community in East Providence, RI, and Greenwich Bay, a 104-unit assisted living and memory care community in East Greenwich, RI. The disposition is part of the seller’s strategy to reduce its concentration in non-strategic assets. The acquisition represents an opportunistic investment for Capital Health Group and Milestone to re-brand the communities and invest in renovations totaling $15.3 MM to alter the programming mix and improve occupancy and operations across the portfolio. The location of the three assets creates an efficient cluster of scale around the Providence MSA.
The Cushman & Wakefield team involved in the transaction included Vice Chairman Richard Swartz, Executive Director Jay Wagner, Director Jim Dooley and Associate Sam Dylag.
“We’re pleased to have worked with our client on the disposition of non-strategic assets. These assets represent a unique opportunity to acquire a concentrated portfolio in a high barrier to entry market with upside.”, noted Swartz.
About Capital Health Group
Capital Health Group, LLC is a self-advised real estate company that focuses on independent, assisted living and memory care facilities. Capital Health Group, LLC makes capital investments in the senior housing market through acquisition and development. It is a subsidiary of Capital Funding Group.
About Milestone
Milestone Retirement Communities is a senior living operator based in Vancouver, WA. Founded in 2008, it operates 86 communities in 18 states and has a deep and experienced management team at all levels of care in senior housing. Milestone’s major concentrations are in Washington, Oregon, Arizona, Utah, Florida, Pennsylvania, and New Jersey, and is a mix of communities owned, leased, and third-party managed.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 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.
