By Jack Stubbs
“This was a strategic acquisition by Sabra to expand its senior housing platform by acquiring ownership stake in a real high quality platform that we can grow going forward,” said Richard Matros, CEO at Sabra Health Care REIT Inc.
On Tuesday September 19th, Irvine, California-based Sabra Health Care, a real estate investment company that specializes in the management of healthcare-related assets, acquired three Seattle properties: Issaquah Nursing and Rehab Center, for $18.2 million, the Park West Care Center in west Seattle for $12.5 million, and the Burien Nursing and Rehab Center for $18.6 million, or roughly $957 per square foot, according to public records filed with King County.
The seller of the three properties was Dana Point, California-based North American Healthcare, Inc.
Sabra Health Care bought the 140-unit Issaquah Nursing and Rehab Center for roughly $130,000 per unit, according to public records filed with King County. The 137-unit 3-story Park West Care Center sold for roughly $91,240 per unit. The deal for the 54,863 square foot property was recorded on September 20th.
Built in 1966, Issaquah Nursing and Rehabilitation Center is located at 805 Front St. South in Issaquah, Washington. The facility is located roughly twenty miles southeast of Seattle and twelve miles to the southeast of Bellevue. Additionally, the property is just ten minutes from access to Interstate-90. The property sits on roughly 6.5 acres of land. Notably, the nursing center is bounded by green space in all four directions, with Lake Sammamish State Park to the north; Cougar Mountain Regional Wildland Park just two miles to the West; and Tiger Mountain State Forest bordering the eastern edge of the property.
According to its web site, the property offers a wide array of services to its residents, including social services, nursing services, rehabilitation services, and long-term and end-of-life care. The healthcare provider has also won various awards over the last 2-3 years.
Park West Care Center, built in 1961, sits on almost 45,000 square feet of land. Located at 1729 California Avenue southwest in Seattle’s North Admiral Neighborhood, the property lies on the southern edge of Elliott Bay, just one-and-a-half miles to the north of the West Seattle neighborhood.
Built in 1962, the Burien Nursing and Rehabilitation Center is located at 1031 SW 130th St., three miles from access to Washington State Route 509 and 9 miles south of downtown Seattle. The facility’s website emphasizes how its central location allows it to serve people throughout the surrounding areas, describing the facility as “a convenient care choice for those living in the Burien and greater Seattle metro area. Located just 10 minutes from downtown Seattle, many of our clients come from Harborview, Swedish, and Virginia Mason hospitals.” The facility provides a variety of services to its clients, including 24-hour skilled nursing and long-term care.
Sabra Health Care is a self-administered, self-managed real estate investment trust that owns and invests in real estate assets that serve the healthcare industry, according to its web site. Operating nationwide, the company’s portfolio contains more than 500 properties including skilled nursing, senior housing, hospitals and other assets within the healthcare industry. According to its website, the company’s main objectives are to “grow our investment portfolio while diversifying our portfolio by tenant, asset class and geography within the healthcare sector.”
The company’s recent acquisition of the two properties is part of a larger portfolio expansion. On Tuesday, Sabra made a joint announcement with Chicago-based Enlivant, a senior housing community, and TPG Real Estate, a private equity firm, that the company had entered into definitive agreements to take a 49 percent equity interest in a joint venture comprising 183 senior housing communities and 8,280 units. The portfolio, which spans 20 states, is valued at $1.62 billion, with Sabra’s 49 percent minority equity investment valued at $371 million. Sabra has the option of buying the remaining 51 percent in the future, according to a statement from the company.
North American Healthcare is a nursing home owner and operator that specializes in rehabilitation programs and end-of-life and long-term patient care. According to the description on its web site, the company’s programs are directed at serving a wide range of individuals requiring short- and long-term medical care and therapy.