SkyWalker Property Partners and Utah-based Zelevie Health have acquired the shuttered 116-bed Healthcare Resort of Waco, launching the investment firm’s entry into a new property sector and introducing a new provider to Texas.
The assisted living and skilled care facility at 5801 Crosslake Parkway will be re-branded Zelevie Health of Waco. The 116-bed project, completed in 2015, was closed in 2018 as a result of a tenant-landlord dispute.
Come Together Prop Co LLC, a single-purpose entity of SkyWalker’s When Opportunity Knocks investment fund, is the buyer of record. The seller, KCP Waco Holdco LLC, is affiliated with Kawa Capital Management.
“While it is a new asset class for SkyWalker, we really liked the real estate,” says William Welder, director of acquisitions and capital for the North Texas-based investment firm. “It’s a class A project in a class A+ location. We are investing in a market we know and, with a partner we strongly believe in.”
About $500,000 will be invested into addressing deferred maintenance and upgrading the kitchens, dining areas, landscaping and mechanical systems. Zelevie Health anticipates the facility will be ready to accept residents in the fourth quarter.
Zelevie Health of Waco is situated on 6.7 acres adjacent to the 210-bed Baylor Scott & White Medical Center – Hillcrest, a part of the 150-acre Legends Crossing mixed-use development at the junction of Interstate 35 and TX 6 on the city’s south side. The neighborhood also includes upscale single-family homes and Central Texas Marketplace, featuring a mix of high-end retail and restaurants.
The JV’s new holding is a two-story structure, totaling 77,000 sf, with 30 assisted living and 86 skilled nursing beds plus a state-of-the-art, fully equipped physical therapy unit. Resident amenities include several lounges, media room and outdoor terrace with gathering spaces and a putting green.
Demographically, there are roughly 34,000 residents within a three-mile radius, 14.7% of whom are 65 years or older. A second hospital, Ascension Providence Healthcare, is less than three miles away.
The SkyWalker-Zelevie JV was self-represented in the transaction. Amy Sitzman of Blueprint Healthcare Commercial Real Estate handled negotiations for the seller.
Zelevie Health’s management team are industry veterans with a combined 200 years of experience in operating senior living properties.The Waco project is the first acquisition for a new portfolio, with SkyWalker Property as the lead on the investment play and managing partner.
“We’re optimistic about the outlook in this property sector,” Welder says. “We’ve identified other properties in Texasthat could be a good fit for the JV’s portfolio.”
In an unrelated transaction for the fund, SkyWalker Property has sold the 141,480-sf One Northwind Plaza at 7600 W. Tidwell Rd. in Houston to an owner-user, Versa Creative Tower LLC, which was self-represented in the transaction. Darrell Betts of Avison Young – Texas LLC represented the seller of record, Blowin’ in the Northwind LLC & Bardin Square Investors Ltd.
The eight-story office building, situated on three acres, is connected via a covered walkway to a 462-space, four-level parking garage with controlled access. The project had undergone $1.6 million of renovations during SkyWalker Property’s four-year hold. One Northwind Plaza will remain a multi-tenant office project.
SkyWalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-addinvestments on behalf of When Opportunity Knocks LLC and Cash Flow Fever LLC, funds formed in 2017 to build a
$200 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $2 million to $15 million. Additional information about the investment group is available at www.SkyWalkerProperty.com.
