At long last, the end of a saga. The final Sunwest Management properties of the portfolio purchased by Lone Star, have been sold, and it was somewhat of a unique sale. For reasons that are too detailed to discuss, the properties were the last ones in a private REIT established years ago by the seller, and the sale had to be the purchase of the entity as opposed to the purchase of the outright real estate. SilverStone Health Care Real Estate figured out a way to get it done, and they closed on this portfolio for about $112,000 per unit.
The portfolio included a 340-unit IL/AL/MC campus in the Peoria/Sun City area of Arizona and a 148-unit AL/MC community in Yuma, Arizona. The total purchase price was close to $65.0 million with a cap rate of about 6.4% based on current occupancy of 83% portfolio wide. The buyer is keeping Senior Lifestyle Corporation as the manager, which was brought in two years ago. CBRE National Senior Housing Group arranged $48.5 million of three-year floating rate mortgage debt with a unit of GE, of which 24 months is interest only. CBRE arranged the sale of the property as well. An equity partner provided some preferred equity to round out the capital stack.