August 12, 2016

Washington D.C. group buys several senior housing complexes in this area

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Northgate Plaza has 118 units and sold for $17.3 million.

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CRP/CSH Woodinville LLC paid $16.36 million for The Creekside in Woodinville.

King County records show that three separate senior housing facilities sold to the same buyer for a combined total of over $53 million. A related transaction in Snohomish County hasn't been recorded yet.

The first King County property, located at 7810 S.E. 30th St. on Mercer Island, is Island House, which is managed by MBK Senior Living of Irvine, California. It sold for $19.75 million, and has two four-story buildings with 79 units and about 92,000 square feet.

Island House was developed in 1990 by Leon Grundstein and was previously affiliated with Merrill Gardens — a company he co-founded but no longer runs.

The seller was Sound Communities-Island House LLC, which lists Grundstein among its members. The buyer was CRP/CSH Mercer Island LLC, and it is associated with a Washington, D.C., joint venture between private equity firm The Carlyle Group and Capitol Seniors Housing.

The second property, located at 11030 Fifth Ave. N., is Northgate Plaza, also previously affiliated with Merrill Gardens and currently managed by MBK. It sold for $17.3 million. Built in 1992, the four-story building contains 118 units and over 94,000 square feet.

The seller was Sound Communities Northgate LP. The special warranty deed bears Grundstein's signature. The last recorded transaction for the company was in 1992 and involved Gencor, which Grundstein ran before Merrell Gardens.

The buyer was CRP/CSH Northgate LLC, which is associated with the same Washington, D.C., partners.

In the third related transaction, CRP/CSH Woodinville LLC paid $16.36 million for The Creekside, located in Woodinville at 18151 140th Ave. N.E. (and 18200 Woodinville-Snohomish Road N.E.). It was previously associated with Merrill Gardens, and now is managed by MBK.

There are 91 units in two buildings, constructed in 2003-05, with about 50,000 square feet in each. County records list the seller as TRF/FS Creekside Gardens LLC, associated with Rob Spitzer and Steven Friedman, associates of Grundstein, who also signed the Northgate deed.

Full county documentation for the third deal wasn't available at press time.

In Snohomish County, the fourth CRP/CHS acquisition, confirmed by MBK but apparently not yet recorded, was Mountlake Terrace Plaza, at 23303 58th Ave. W. County records show it was purchased in 2006 by Sound Communities-Mountlake Terrace LLC, also associated with Spitzer, Friedman and Grundstein. The three-story facility was built in 1989. Other details could not be confirmed.

The website for Capitol Seniors Housing describes it as a real estate private equity firm focused on acquiring and investing in senior housing communities. Since 2003, it has invested more than $1 billion on behalf of joint venture partners. Calls to the company were not returned.

Grundstein, whose current venture is GenCare Lifestyle, could not be reached for comment. A representative said he was on vacation.