Ray Giannini of Marcus & Millichap’s Milwaukee, Wisconsin office, along with Associate John Klement, worked on behalf of a local developer to sell a 94-unit senior living community in Savage, Minnesota (Minneapolis MSA). Why sell a community that since opening in 2015 has seen occupancy soar up to 94% and operating margin stabilize at just over 35% on about $4.2 million of revenues? The seller, which has previously developed a number of seniors housing co-ops in the area, hopes to take the proceeds of this successful transaction to further grow its business in the Minneapolis market.

Much of the credit for the quick lease-up can be chalked up to Ebenezer Management Services, which filled the community with nearly 100% of private pay residents. It stayed on as operator as ownership transferred to a Minneapolis-based investment group. The deal represents just the second seniors housing investment for the group, which has no plans to acquire more seniors housing assets. They paid $22.25 million, or $236,700 per unit, with a cap rate around 6.8%. Nice job by Ray and John.