Carrieros’ close

Damien and Ken Carriero had their hands full, to say the least, in their latest closing. The duo from Collier’s International sold a 30-unit/50-bed assisted living community in Venice, Florida for $2.15 million, or $71,667 per unit, with an 11.79% cap rate. The deal was far from “straight-forward,” though. The current seller sold the community a few years ago as a lease with an option and then moved to California. However, the buyer/lessee apparently ran the operations into the ground, while leaving the building in a state of disrepair, and then promptly left the country. The seller, now an owner/operator in California, hired a management company to turn things around, but soon fell behind in mortgage payments. When the bank was ready to foreclose, the county was about to condemn the property and the AHCA was going to pull the license, the court appointed a receiver to run the facility until the foreclosure was finalized and the facility closed down. That’s where the Carriero’s came in, who found a buyer who was willing to both take on the challenge and pay cash. The receiver held off on the foreclosure, kept the license and avoided a condemnation from the county, and eventually closed on the sale. The community, built in 1990 and renovated in 2006, was just 52% occupied and brought in $772,000 in revenues. So there is a long road ahead for the buyer, who paid all of the closing costs.

 

 

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