A New Horizon?

Michigan has been in the news a lot lately as the home of political upsets and recounts. But it’s also the home of Mike Garbers and Cody Tremper’s (of Greystone Real Estate Advisors) latest transaction. The duo represented a publicly traded REIT in the sale of its 298-unit independent living community in Southfield, Michigan to a private equity firm. Built in 1998 on seven acres, the Brookdale Senior Living-operated community features a host of amenities, including a greenhouse, gazebo, library, restaurant-style dining and a beauty/barber shop, but it has significant capex needs. That perhaps explains the relatively low purchase price of $12.5 million, or about $42,000 per unit. For some context, the same property (when it included 306 units) sold in 2004 for $20.5 million, or about $67,000 per unit. Horizon Bay Senior Communities was the buyer at the time. We’ll have to wait and see what’s on the horizon for the new PE owner.