Evans Senior Investments closed yet another Texas transaction this year, a month after closing a three-property, 221-unit assisted living portfolio sale there for $45 million. The firm represented an institutional group based on the East Coast in its divestment of a 77-unit assisted living/memory care community in the town of Missouri City (Houston MSA). The purchase price came to $14.35 million, or $186,000 per unit, which is below average for the sector, especially for a new community (it was built in 2010). However, this is where the issue of overdevelopment may be having its effect. Since opening, the community has averaged just 79% occupancy, albeit with a 100% private pay census. The assisted living, and particularly memory care, sector has contributed to most of the senior care construction in the Houston area, costing an average of about $203,000 per unit to build in the state, according to our in-house development database dating back to 2013. So, we imagine the seller, which had brought in a third-party manager to operate the community, faced some of those difficulties. Dealing with that going forward will be the buyer, a Texas-based seniors housing operator with over 35 communities in the state. The buyer assumed the community’s HUD loan, sparing the seller a prepayment penalty.
Evans Senior Investments Handles Texas Transaction
