Less than a week after completing the sale of its entire U.S. portfolio comprised of 5,025 suites in 35 communities, the net proceeds from which amounted to USD $333.0 million, Chartwell Retirement Residences decided to put that money to use in acquiring a high-end, 257-unit independent living community in Toronto, Ontario for $85 million, or $330,700 per unit (compared to the average price per unit for IL in the US in 2014 of $246,800). Located in four towers across from Toronto’s High Park, the community was built in 1985, but recently underwent a significant renovation to the units and common areas. The property also includes 66,880 square feet of commercial space that is 100% occupied. Meanwhile, occupancy at the retirement community, which stands at 84%, can be improved under the Chartwell brand. The company will pay in cash and estimates the blended capitalization rate to be 7.1%.
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