ARC Buys Southeast Assisted Living Portfolio for $143M

By Barbra Murray, Contributing Editor

American Realty Capital has shelled out $143 million on the acquisition of a nine-property assisted living portfolio from Prudential Real Estate Investors. The group of assets, located in four states in the Southeast, encompasses 640-units and a parcel of land.

ARC was just one of many investment entities that were eager to snap up the collection of seniors housing communities, which was marketed by commercial real estate services firm Cassidy Turley. “Bidding was very aggressive for this portfolio–strong buyer interest,” a Cassidy Turley spokesperson told Commercial Property Executive.

The portfolio, which features a total of 453 properties living units and 187 memory care units, includes three assets in Georgia: Arbor Terrace of Athens in Athens; Arbor Terrace at Cascade in Atlanta; and Arbor Terrace of Decatur in Decatur. An additional three communities are located in Florida: Arbor Terrace of Largo in Largo; Barrington Terrace of Fort Myers in Fort Myers; and in Naples, Barrington Terrace of Naples. Rounding out the group of existing properties are Asheville, N.C.’s Arbor Terrace of Asheville, and Arbor Terrace of Knoxville in Knoxville, Tenn. And the entire portfolio is capped off by a nearly four-acre parcel of land in Decatur that will be the site of Arbor Terrace at Parkside.

The seniors housing sector is hot in general, but when it comes to investments, the assisted living sub-sector is practically on fire. During the 12-month period ending in the second quarter, investment activity jumped by 72 percent from the previous 12-month period, according to a report by Marcus & Millichap Real Estate Investment Services, and the median sales price increased 20 percent.