CBRE had quite the month in November, with its National Senior Housing team announcing four separate sales totaling about $400 million, and its Senior Housing Debt and Structured Finance team closing over $215 million in debt in November. Aron Will and Austin Sacco facilitated the debt transactions, while Lisa Widmier represented the three different sellers in the four transactions. The acquisitions involved eight properties in five states, with more than 960 units comprising independent living, assisted living and memory care services. They sold for an average price per unit of about $411,000. All of the properties, except for one, were in different stages of initial lease-up, making that per-unit value especially impressive.
One highlight was the sale of two Florida senior living communities that were both newly built under the “Inspired Living” brand and offered both assisted living and memory care units in Jacksonville and Stuart, Florida. They total about 300 units and were still filling up at the time of the sale. Local press named Welltower, in a partnership with Discovery Senior Living, as the buyer, while the seller was an affiliate of Kronos Capital. Although the combined purchase price was not disclosed, the properties sold for around $225,000 per unit.
Then, Ms. Widmier handled the sale of an assisted living/memory care community in Grand Junction, Colorado, which we reported on last month. Opened in October of 2017 with 40 assisted living and 26 memory care units, the community was developed by Confluent Senior Living at a cost around $12.5 million, or $189,400 per unit. Confluent had hired Christian Living Communities’ (CLC) for-profit arm, Capella Living Solutions, to operate it under a third-party agreement. In the end, CLC emerged as the buyer. The purchase price was not disclosed (although it was rumored to be near $300,000 per unit) and was financed with owner equity and tax-exempt bond financing.