A successful bidding process for a portfolio of four assisted living/memory care communities ultimately yielded a familiar buyer: the portfolio’s existing operator. Located in Oregon and Washington, the 152-unit portfolio was owned by a partnership among four seniors housing industry veterans, who were looking to retire from the business.

Averaging over 20 years old, the properties included two well-performing locations and two that would be considered value-add. They actually are part of a larger portfolio disposition by the partner owners, as a 65-unit AL/IL community in Wenatchee, Washington already sold earlier this year. Two others are in escrow and are scheduled to close in the fourth quarter. Jim Hazzard and Nick Stahler of JCH Senior Housing Investment Brokerage were the lead advisors on the transaction (in addition to the Wenatchee sale) and eventually solicited around five attractive offers. This interest prompted the existing operator to raise its own offer and ended up paying $16.5 million, or $108,550 per unit, with a market cap rate around 8%.