We continue to hear of the growing interest in 55+ senior apartment communities, which would, many believe, provide an affordable bridge to independent or assisted living for Baby Boomers. Ray Giannini and John Klement of Marcus & Millichap capitalized on that interest and sold a 110-unit senior apartment community in Fridley, Minnesota (Minneapolis MSA) for $13.5 million, or $122,700 per unit, with a 6% cap rate.
Built in 1999, the property is located on 3.3 acres and features an underground parking garage. Each unit comes with a private bathroom (with walk-in showers), kitchens, dishwashers and large windows, while community amenities include a beauty shop and spa, a large great room with a kitchen, a sun room, exercise equipment, library, laundry rooms, community gardens and an indoor car wash. The building was well maintained, with significant on-going capital improvements, and clearly well managed, with strong occupancy and a 57% operating margin. Neither the buyer or seller were disclosed.
