Knapp Group Seniors Housing Advisors of Marcus & Millichap closed a couple of sales around the Great Lakes. First, Jim and Justin Knapp teamed up to represent a local owner in their sale of an assisted living community in southeast Michigan, exactly 11 years after helping them initially acquire it. Built in 1987 and recently receiving significant upgrades, the 50-unit community was well occupied (over 90%) and operated at a 20.5% margin. With the new improvements, that margin should only improve. Another local owner/operator paid $6.5 million, or $130,000 per unit (at an 8.4% cap rate), for the property.
Then Justin Knapp was the lead advisor in the sale of a 55-unit assisted living/memory care community in rural northeast Ohio also for $6.5 million, or $118,200 per unit. Consisting of two buildings built in 2000 and 2013, this community reported strong cash flow and good occupancy, which attracted an in-state buyer. The seller exited the industry with the transaction.
