A pair of well-located, well-occupied and relatively new assisted living/memory care communities in Suffolk County, New York recently received $62.8 million in financing arranged by Aron Will of CBRE National Senior Housing. The loan, which featured a five-year fixed rate and 60 months of interest only, was placed through a life insurance company and came out to approximately $230,800 per unit.
Both communities, owned by a joint venture between Harrison Street Real Estate Capital and The Engel Burman Group, had occupancy rates in the high 90s and are located in affluent towns in the New York City metro area. The 118-unit AL community in Huntington was developed by Engel Burman in 2010, while the 152-unit AL/MC community in Sayville was built in 2014. And a division of Engel Burman, Ultimate Care Assisted Living Management, operates the two properties.
This joint venture is well known for its high-priced acquisitions in the greater New York City market, having acquired five Bristal communities with 640 total units in 2012 for $290 million, or $453,100 per unit (no small sum back then), plus two more Bristal communities (including the Huntington property) in 2013 for $80 million, or $333,300 per unit. Both of those acquisitions featured cap rates around 6.8%.
