On Wednesday morning I got two emails asking if had heard that Bonaventure Senior Living was selling nearly all their portfolio. I did some digging and found one story that suggested they”. . .may be keeping half a dozen properties” which made it sound pretty significant . . . maybe even ominous. I made some calls and ended up talking with Kelly Hamilton Bonaventure’s CEO. Here is what he told me:
Decisions for the Sale
There were a number of factors that went into making the decision to sell this portion of the portfolio now:
- Bonaventure began as an assisted living company initially focused on small pure assisted living communities. As the company grew, what evolved were larger luxury campuses with three levels of care.
- Fundamentally there are two generations of Bonaventure communities; those built prior to 2004 which were smaller free standing assisted living communities often in widely scattered locations. The communities developed from 2004 to the present are larger multi-level campuses serving a more diverse population of seniors.
- This second generation vision of three levels of care continues to be the focus of Bonaventure development and reflects their vision for the emerging senior marketplace.
- The decision to sell was made in an effort to strengthen the company and more narrowly focus on their niche market.
- The demand for senior living communities by the investment and operating communities are at an all-time high. Because of the high demand there has been a steady upward trend in the prices investors are willing to pay for existing communities. Bonaventure felt it was a great time to maximize their return.
- The final goal was to create a footprint with a greater density of communities. They had 4 “current vision” communities in the states of Montana, Idaho and Nevada but did not see additional opportunities for this model and so those communities were included in the sale portfolio.
The Sale by the Numbers
- The sale is comprised of their first generation properties plus four current generation properties in Montana, Nevada, and Idaho
- The total sale price was $457,300,000 or $209,291 per door
- The 21 communities being sold represents, 55% of the existing communities with 2,185 units, which was 45% of the pre-sale portfolio (based on number of beds)
- When the sale is complete the remaining portfolio will consist of 18 communities with 2,537 doors in just three states: Oregon, Washington and Colorado
Bonaventure has retained its’ complete team and has a five year plan of slow steady growth in Oregon, Washington and Colorado.