It is not often that a seniors housing brokerage firm can sell a community in their home town, but the Boulder, Colorado office of Evans Senior Investments was hired to sell a 54-unit independent living community in Boulder. The community, built in 2007, has been averaging an occupancy rate of 93% to 94%, but may have been slightly higher at closing. That high occupancy rate might have something to do with the fact that the majority of the units have two-bedrooms and the majority have more than 1,000 square feet inside the units. Rates range from about $3,000 to $4,500.
With an operating margin close to 50%, this must be a very well-run community, since it is also quite small for independent living. But on a square footage basis, it is quite large with more than 110,000 square feet. Financial details were not disclosed, but according to local media, the price was close to $20 million, which would put the per-unit value near $370,000 (we could not verify that). Given what we know about the property, we assume it sold for a cap rate below 6.5%. However, it was owned by a not-for-profit, so we do not know if expenses were above average, which would drive the cap rate up a bit if they were. The community will be managed by Dial Communities, which we assume joint ventured in the acquisition with Harrison Street Real Estate Capital.
