Only three years after buying a senior living community in Park Ridge, Illinois (Chicago MSA), Capitol Seniors Housing (CSH) is selling at a premium. Originally built as a hotel in 1962 but converted to senior living in 1986, this property includes 154 units of independent living, assisted living and memory care.
CSH had purchased it in September 2015 from a local family for a price of $32 million, or about $220,700 per unit, at a cap rate of 7.2%. Occupancy was in the mid-90s at the time, and the community operated at a 25% margin on $9.2 million of revenues. CSH planned to invest up to $5.5 million in renovations and complete a memory care conversion previously started by the seller. They also had The Arbor Company step in to third-party manage it and oversee the project.
The renovation/conversion must have been a success, because CSH is now selling the property for a reported $54 million, or over $350,000 per unit, to buyer Focus Healthcare Partners. HFF once again handled the transaction and arranged $36.5 million in financing to help fund it.