A Cheektowaga senior housing community that was owned by a Central New York company has been acquired by a publicly traded New York City-based real estate investment trust for $12.5 million, but it will still be operated by the same management.
NorthStar Realty Finance Corp., acting through CHTWGA NT-HC1 LLC, bought the Peregrine’s Landing Senior Community at 575 Cayuga Creek Road this week from Peregrine’s Landing LLC, which is owned by Peregrine Senior Living of Syracuse.
The complex features studio and one-bedroom apartments on the first and second floors, with kitchenettes and emergency response systems in the bathrooms of each unit. It also includes St. Therese’s Terrace, a specialized “memory-care” area for individuals with dementia or Alzheimer’s. The campus has a central landscaped courtyard, country store, library, porch and bar-style pool room.
The purchase is designed as a sale-leaseback to refinance the debt on the property, with Peregrine continuing as the operator of the facility as before, said Peregrine principal Mark D. Farchione. The company will also be adding 14 “memory-care” beds to the existing facility, he added. “There’s absolutely no impact on the operations or residents,” he said.
Peregrine is a planner, developer, operator and manager of senior living projects, with a total of eight communities in three states, including six in upstate New York and one each in Georgia and Connecticut. The company has also previously developed or managed communities in Baltimore and in Michigan.
In Cheektowaga, the company took what it described on its website as an “undesirable and undeveloped flood zone property” and invested $6.9 million to develop an assisted-living and memory-care community with financing from the U.S. Department of Housing and Urban Development.
The community is 95 percent occupied and was valued at over $14 million, according to Peregrine’s website.
NorthStar, which is structured as a real estate investment trust, is a diversified commercial real estate investment and asset management company, with over $10.6 billion in assets under management for its investors as of the end of 2013. The company originates, structures, buys and manages commercial real estate debt and securities investments – including mortgages, mezzanine loans, credit tenant and other loans – and also buys and owns properties.
Its property portfolio includes manufactured or mobile home communities, health care complexes, multifamily projects and other real estate. On the health care front, it specializes in independent living, assisted-living and skilled nursing facilities, with 87 properties totaling $578 million in assets in 18 states.