We told you that the folks at Newmark Knight Frank were going to have a big year end, and in the days just before Christmas they closed four transactions worth about $550 million in total. Not a bad way to end the year, and we hope they are all off on vacation until January 5.
In the largest transaction, Ryan Maconachy and Chad Lavender sold a portfolio of three Discovery Senior Living-operated assets on behalf of Kayne Anderson. The three communities with 483 units are located in Virginia, Pennsylvania and Delaware and average about 45% independent living, 34% assisted living and 21% memory care units. Overall occupancy is a solid 94%. The buyer was Partners Group, an international private equity from with more than $91 billion under management.
In the second largest sale, Maconachy and Lavender were joined by Dave Fasano and Ross Sanders to sell a portfolio of four Allegro Senior Living communities located in Florida. In this deal, Kayne Anderson was the buyer, joint venturing with Partners Group, and the seller was PGIM. About 51% of the units are IL, 39% are AL and 10% are MC.
Maconachy and Lavender also closed a few one-off deals. On behalf of Carlyle Group, they sold a community in Texas that was originally an active adult community when purchased in 2013 that was converted by Carlyle to full service independent living, with assisted living and memory care units added later on. There are a total of 282 units with occupancy hovering near 90%. NKF’s Sarah Anderson placed the acquisition debt with Freddie Mac. Although we do not know what the cost of the IL conversion and adding AL and MC units was, it looks like Carlyle made a pretty penny on its six-year investment.
Although individual prices have not been publicly disclosed yet, the average for all four transactions was close to $375,000 per unit, but includes four different types of units, including active adult, which usually command the lowest prices. Happy New Year.