Triumph in Tucson
Making its second-ever acquisition in Arizona, Chicago Pacific Founders added a 140-unit independent living community in Tucson to its growing portfolio of now eight properties located across the country. Almost a year prior to this deal, CPF had entered into the Arizona market with its $7.2 million purchase of a 79-unit assisted/independent living community in Sun City. Also, just over the border in Nevada, CPF acquired a 72-unit assisted living community in Pahrump for an estimated $7.5 million. The newest property is located in a residential and retail area in southwest Tucson, and is close to several major medical centers. CPF plans to make investments in the community, and its... Read More »
Memory care miniaturized
Four memory care communities with a combined 38 units in Montgomery County, Maryland recently sold to an in-state owner/operator for $4.3 million, or $113,158 per unit. All built between 15 and 30 years ago, the communities feature all private rooms and are 100% private pay. Occupancy was also usually full, with a waiting list. One building was actually larger than the other three, but they still combined for just 25,000 square feet. The transaction featured a 14.8% cap rate. Bob Gaines of Colliers International represented the private owner/operator seller in the transaction. Read More »Age before beauty
There was a complete flip-flop in the percentage of skilled nursing facilities sold by age, with the oldest category (greater than 40 years old) increasing to 52% of the properties sold in 2015, compared with just 22% in 2014 (according to the 21st Senior Care Acquisition Report, released last month). Several of these properties, however, sold for more than $100,000 per bed, indicating their location or profitability overcame the issue of their old age. But, if we saw a massive increase in the number of sales of 40-year old SNFs (or older), then what drove the market to its all-time record high average price of $85,900 per bed? It was an increase in the number of facilities sold that were... Read More »The Growing Memory Care Market
Memory care is a growing need, and it has been the focus of a lot of new development. But it can be risky as well. Last week I talked about the first quarter occupancy and new construction stats, but today let’s focus on memory care. This has been an area of heightened investment interest because there are fewer memory care units in the market then AL and IL and, unfortunately, the need for memory care will only increase, and may increase at a faster pace than traditional assisted living. Some providers are even seeing an increase in the “young” population with memory care or other dementia-related issues, and I am talking about under 70 years old and not just retired NFL players. It is a... Read More »Schedule a demo
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