We wrote last week that Texas accounted for over a third of transactions in April, but Evans Senior Investments closed out the month with one more, and it was the largest. Featuring three private pay assisted living/memory care communities and 221 total units, the Stoney Brook portfolio sold for $45 million, or $203,620 per unit, with a 6.4% cap rate. They were owned by Stoney Brook Communities and built in 2010 and 2011 in the central Texas towns of Belton, Hewitt and Copperas Cove. Two are stabilized, with occupancy in the high-90s and operating margins around 35%, but the Copperas Cove community is considered value-add at 80% occupancy and an 8% operating margin. In addition to improving operations, the regional owner/operator buyer will also have the opportunity to purchase Stoney Brook’s newest development in Richardson, Texas, which opened this Spring.

This was the second Texas deal for Evans Senior Investments in April. The firm previously closed the sale of a 64-unit assisted living community that is nearly all private pay but could also improve its 81% occupancy. Built in 2001 and renovated in 2007, the community was owned by Living Care Senior Housing Development and is located on about four acres just outside of Dallas, in the town of Frisco. In addition to census, operations could also improve, with just a 12.5% margin on $2.65 million of revenues. There is room for expansion on the property, which the new owner can capitalize on, assuming they stabilize the community. A regional owner/operator looking to grow its Texas holdings emerged as the buyer, paying $7.86 million, or $122,813 per unit.