A California real estate company made a $20 million leap into Chesterfield last week.
Sabra Health Care REIT bought The Virginian, a 120-room senior living center at 300 Twinridge Lane. The Virginian sold for $20.2 million as part of a 21-property, $550 million deal between Sabra and The Virginian’s former owner Holiday Retirement.
Sabra will lease back all of the facilities to Holiday, Sabra President Rick Matros said. The REIT will make its money from rent payments as Holiday continues to run its business at each facility.
“Holiday will remain the operator, we just bought the real estate,” Matros said. “From a resident’s perspective, we’re essentially invisible.”
Matros said the deal came together after Holiday Retirement was acquired by a private equity firm that decided to shed its real estate holdings. He said Sabra financed its acquisition off of a line of credit.
The entire Holiday portfolio spans 15 states and about 2,850 units. Holiday’s properties had an occupancy rate of about 90.5 percent as of June 30, according to a Sabra press release.
The deal marks a break from Sabra’s typical acquisitions, Matros said. Most of the REIT’s holdings are in assisted living and facilities for residents with Alzheimer’s disease. The Holiday properties are independent living facilities for seniors.
Matros said Sabra did not have any particular affinity for The Virginian among the 20 other properties it now owns, because the entire package is full of properties that are essentially the same. Holiday’s consistency from complex to complex was one of the portfolio’s major draws, he said.
“Holiday was built by its founder with a very specific model and a very specific blueprint in place. The only differences between the facilities they have built is really the geography,” Matros said. “When you go from facility to facility, you see the same type of culture and the same focus on residents.”