Second Asisted Living

Posted By: Pat Nelson / Apr 19 2009

Aliso Viejo, Calif.— In their second successful collaboration, Nelson Brothers Professional Real Estate, LLC, and Premier Senior Living, LLC, (New York) have acquired Eden Heights of West Seneca, a single story 104-bed, assisted living facility built in 1996 in West Seneca, NY. The property was structured as a Tenant-in-Common (TIC) transaction that officially closed on April 15, 2009 with seller carry-back financing, according to Brian Nelson, Principal and Co-Founder of Nelson Brothers, a Southern California-based real estate investment group.

The property, Eden Heights of West Seneca, is the sister property to Eden Heights of Eden, New York which was the first joint venture between Nelson Brothers and Premier Senior Living, and closed in February. West Seneca was purchased for $17,470,000 with $7,795,000 in equity and a loan of $9,675,000. The property is master leased to Premier Senior Living who will pay investors a fixed lease equating 8% cash-on-cash return.

Added Nelson, “Our strategy with the Eden Heights properties is very simple. We like the stability with high-upside potential. We take a well-occupied property and replace a Mom and Pop type operator with a seasoned operator. The goal is to grow property through increased efficiency and organic net operating income growth.”

Wayne Kaplan and Robert P. Borsody, owners of Premier Senior Living, in the aggregate have between them over 37 years owning and operating assisted living facilities in New York State and throughout the country. The company’s mission and philosophy is to champion the quality of life for every senior, providing a comfortable and dignified lifestyle that enhances each resident’s well being.

According to Nelson, partnering with Premier Senior Living seemed like the perfect management team for them to work with in this investment. “We were impressed with their sophisticated level of management experience that is based on a complete understanding of the financial and market pressures impacting senior care facilities,” he said. “Additionally, we like the fact that they are committed to providing the facilities with programs and services designed to effectively and efficiently meet the needs of staff and residents.”

Nelson Bros. launched their real estate company in 2007 concentrating on the acquisition, financing and ownership of two need-driven assets classes that offer sustainable long-term growth, University Student Housing and Assisted Living Facilities.