The acquisition contains 2,130 independent living units in the metro area, marking a significant expansion in Texas for Horizon Bay. According to CNL's executive vice president and COO Phil Anderson, the REIT usually signs 15-year operating leases with opportunities for extensions.
"MetroNational was looking for a way to capitalize on the market and Horizon Bay felt very bullish on Houston," Anderson tells GlobeSt.com "It was an opportunity to for Horizon Bay to solidify their position in Houston."
The transaction includes the following properties: Terrace at West University, Terrace at Memorial City, Terrace at First Colony, Terrace at Clear Lake, Terrace at Willowbrook and Spring Shadows Place. The properties range from about 200 to 500-plus units, each renting for an average of $2,000 per month. And the portfolio, with assets from four years old to 15 years old, is 92% leased, Anderson says.
"MetroNational is known for building quality product and is well-respected for choosing excellent locations," Anderson says. "All of these properties are located in areas with a high concentration of seniors."
The Orlando-based REIT's portfolio consists of 222 properties in 32 states in the seniors' housing and medical office building sectors. With the MetroNational acquisition, Horizon Bay manages roughly 6,500 units located in 29 seniors' complexes in eight states.
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