Marcus & Millichap’s IPA Division Closes Record Seniors Housing Portfolio Sale in Texas

DALLAS–(BUSINESS WIRE)–Marcus & Millichap (NYSE:MMI) today announced its Institutional Property
Advisors (IPA) division has closed the sale of 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. The transaction is the largest seniors housing sale
on record in Texas.

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.

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

“Over the last 26 years, we built a valuable business with 33 skilled
nursing facilities,” said Kivowitz. “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.”

Jandris said, “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.”

“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.

“Mark and I have closed over $4 billion in long-term care and seniors
housing assets over the past two decades and encountered many unique
buyers and operators,” said Jandris, senior director, IPA. “Due to our
specialization and experience, 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.”

Kivowitz stated he very was fortunate to meet Joshua Jandris and Mark
Myers. “I was impressed with them and their tenacity; they were
incredibly honest and straight forward. They made some representations
that they could accomplish something. I trusted them, and it all came to
fruition. This is a mutually beneficial relationship. I am proud of it.”

About Marcus & Millichap (NYSE: MMI)

With over 1,600 investment sales and financing professionals located
throughout the United States and Canada, Marcus & Millichap is a leading
specialist in commercial real estate investment sales, financing,
research and advisory services. Founded in 1971, the firm closed over
8,700 transactions in 2015 with a value of approximately $37.8 billion.
The company has perfected a powerful system for marketing properties
that combines investment specialization, local market expertise, the
industry’s most comprehensive research, state-of-the-art technology, and
relationships with the largest pool of qualified investors. To learn
more, please visit:
www.MarcusMillichap.com

About Institutional Property Advisors (IPA)

With a network of senior-level investment advisors located throughout
the United States, Institutional Property Advisors (IPA) is qualified to
meet the needs of institutional and major private investors. IPA’s
combination of real estate investment and capital markets expertise,
industry-leading technology, superior support services and acclaimed
research offer customized solutions for the acquisition and disposition
of institutional properties and portfolios.
www.IPAusa.com

Contacts

Marcus & Millichap
Gina Relva, 925-953-1716
Public
Relations Manager