Donald Kivowitz is the founder and chairman of Regency, which manages a conglomerate of more than 120 limited partnerships and corporations.

IPA senior director Jandris tells GlobeSt.com: “Don and his partners ran this company very well. Regency built this portfolio with an eye toward efficiency and excellence. The new owner purchased a revenue stream of a great portfolio with properties that will stand the test of time.”

Regency built the portfolio up to 33 skilled nursing facilities during the past 26 years.

“We have an excellent therapy company, a consulting company, a construction company and a pharmacy. Ultimately we ended up with 4,300 employees taking care of 3,800 elderly and sick people. We also incorporated a skilled unit for rehabilitation where we provided services for patients who came in anywhere from two weeks to two months after hip and knee replacement surgeries. Regency constantly focused on good patient care. We always knew that was the way to build a successful business. We treated our patients and our employees like family,” said Kivowitz.

The US stock of nursing homes is circa mid-1970s and 80s, which makes this portfolio even more unique given that the average age of the property base is only 10 years.

“There are companies with more beds and more buildings that have sold, but perhaps the reason we were able to get the value we did was that Regency not only built their buildings, they owned them, operated them, handled every facet of the business and touched every base within their space, and that created a lot of value. We were able to bring Regency offers from a range of unique buyers, including a family office, a publicly traded REIT, a privately traded REIT and a private equity fund; all were credible buyers. We were able to generate three offers for Regency right away, from a targeted pool of buyers,” says Jandris.

IPA is a division of Marcus & Millichap specializing in serving institutional and major private real estate investors.

DALLAS—A seniors housing portfolio comprised of 33 skilled nursing facilities with approximately 4,200 licensed beds and some “shovel-ready” development opportunities in South Central Texas has been carefully managed for the past 26 years. As part of a strategic positioning on the part of the owner, a sale process was recently initiated to find the right partner.

The result is the largest seniors housing sale on record in Texas and the largest privately held majority skilled nursing portfolio sale on record nationally since 2012. The seller was Regency Post-Acute Healthcare System and the buyer was Capital Senior Ventures.

Institutional Property Advisors (IPA) represented the seller and procured the buyer. Joshua Jandris, Mark Myers, Peyton Stanforth and Charles Hilding, all with IPA, represented the seller, Regency Post-Acute Healthcare System, and procured the buyer, Capital Senior Ventures. Timothy Speck is Marcus & Millichap's broker of record in Texas.

“This is one of the largest portfolio sales of skilled nursing facilities since the $6.1 billion sale of HCR ManorCare's portfolio to HCP back in 2011,” said Myers, executive director, IPA. “Of the 33 skilled nursing facilities, 30 are owned and three are leased to a New York City-based private equity firm.”

Donald Kivowitz is the founder and chairman of Regency, which manages a conglomerate of more than 120 limited partnerships and corporations.

IPA senior director Jandris tells GlobeSt.com: “Don and his partners ran this company very well. Regency built this portfolio with an eye toward efficiency and excellence. The new owner purchased a revenue stream of a great portfolio with properties that will stand the test of time.”

Regency built the portfolio up to 33 skilled nursing facilities during the past 26 years.

“We have an excellent therapy company, a consulting company, a construction company and a pharmacy. Ultimately we ended up with 4,300 employees taking care of 3,800 elderly and sick people. We also incorporated a skilled unit for rehabilitation where we provided services for patients who came in anywhere from two weeks to two months after hip and knee replacement surgeries. Regency constantly focused on good patient care. We always knew that was the way to build a successful business. We treated our patients and our employees like family,” said Kivowitz.

The US stock of nursing homes is circa mid-1970s and 80s, which makes this portfolio even more unique given that the average age of the property base is only 10 years.

“There are companies with more beds and more buildings that have sold, but perhaps the reason we were able to get the value we did was that Regency not only built their buildings, they owned them, operated them, handled every facet of the business and touched every base within their space, and that created a lot of value. We were able to bring Regency offers from a range of unique buyers, including a family office, a publicly traded REIT, a privately traded REIT and a private equity fund; all were credible buyers. We were able to generate three offers for Regency right away, from a targeted pool of buyers,” says Jandris.

IPA is a division of Marcus & Millichap specializing in serving institutional and major private real estate investors.