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$318M Bristal Assisted Living deal closes
The Engel Burman Group said Wednesday it had closed its $318 million deal to buy back the six Bristal Assisted Living properties it sold in 2007.
The Garden City-based real estate developer partnered with Chicago-based Harrison Street Real Estate Capital Llc to purchase the Long Island facilities as it plans to expand the franchise into New England and New Jersey.
Engel Burman and Harrison Street bought the buildings for $2 million less than Engel Burman sold them for in 2007 to Canadian and Australian investors. The company continued to manage the properties, and owned or was developing four other Bristal properties in New York and New Jersey.
“We hope to grow it into a larger chain over the next five to 10 years,” said Jan Burman, president of Engel Burman. “The boomers are turning 65, 8,000 a day. We’re in a good position to capture that market.”
According to Engel Burman’s website, more than 1,000 seniors live in Bristal facilities on Long Island.
The new partnership assumed $197 million of debt in the transaction and paid cash for the rest. Engel Burman contributed a $52 million building to the partnership with Harrison Street.
The building benefits from a payment-in-lieu-of-taxes agreement, known as a PILOT, with the Nassau County Industrial Development Agency. In December, the IDA board declined to consider a request to extend those benefits for another 10 years. PILOTs lower the property taxes a building owner pays and are used as an incentive to spur development. Critics contend that such agreements sometimes go to companies that would invest in their business or properties even without the incentives.