CNL Healthcare Trust Invests Another $40M in Senior Housing

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ORLANDO—CNL Healthcare Trust is investing more than $40 million into senior housing and healthcare real estate in Florida and Iowa. The healthcare REIT's latest investments include $21.6 million into an assisted living and memory care development project in Lady Lake, FL and the acquisition of three senior housing communities in Iowa for about $18.8 million.

CNL will own 100% of HarborChase of Villages Crossing in Central Florida. When completed, the 91,000-square-foot senior housing project will offer two-story building with 96 units. The senior housing facility is next to The Villages, the largest retirement community in the country and one of the fastest growing small urban markets in the U.S., and across from The Villages Regional Medical Center.

“An estimated 5.4 million Americans of all ages in 2012 have Alzheimer’s disease,” Stephen Mauldin, president and CEO of CNL Healthcare Trust, tells GlobeSt.com. “Sadly, that figure is expected to grow to 6.7 million by 2025. Memory care unit occupancy is currently approximately 93% in the CNL Healthcare Trust portfolio, not counting these two transactions.”

Mauldin is betting occupancy will remain at this level across CNL’s memory care projects for near future. And he says long-term projections indicate there will continue to be a strong demand for memory care facilities for many years to come.

CNL also acquired a 75% interest in three Windsor Manor senior housing communities in Iowa through a joint venture agreement with GCI Development. Windsor Manor of Vinton is a 36-unit assisted living and memory care center located in Vinton, IA; Windsor Manor of Webster City is a 46-unit assisted living and memory care facility located in Webster City, IA; and Windsor Manor of Nevada is a 40-unit assisted living and memory care community located in Nevada, IA.

“This is the first acquisition in Iowa, but CNL’s third transaction with Provision Living, the operator of the Iowa properties,” Mauldin says. “Provision Living is familiar with these markets and operates other communities in neighboring states. The acquisition is an attractive addition with a cost per unit of $154,000 and a joint-venture structure that provides a preferred return to CNL Healthcare Trust.”

Since CNL Healthcare Trust launched in the summer of 2011, the fund has acquired interests in senior housing assets valued at more than $350 million. In June 2012, the company entered into a joint venture with Sunrise Senior Living to acquire seven senior housing communities for approximately $226 million.

“While still in its early stages, CNL Healthcare Trust continues to thrive on the investment potential in the senior housing and healthcare real estate sectors,” Mauldin says. “We are partnering with strong, experienced operators in regions where demand for needs-based senior housing is forecasted to be strong now and in the coming years.”