After completing its first acquisition in Minnesota, a 13-property assisted living portfolio, Twin Light Capital headed south and recently closed on a smaller community in Florida. But as they say, it is all about location. Twin Light, a private equity investment management firm that focuses on seniors housing and care, purchased Hudson Manor Assisted Living in the Davis Islands neighborhood of Tampa, Florida.
The island (it used to be two islands that some landfill turned into one) has a population of just 6,000, but Hudson Manor gets about 50% of its residents from the island and 50% from south Tampa. It is a relatively posh area (Tom Brady just bought a house there as he joins the Bucs) and Tampa General Hospital, with about 1,000 beds, is literally next door.
Hudson Manor is the only senior living community on the island, and is one of two buildings on the island listed on the National Register of Historic Places. It was originally built in 1926 as the Palmerin Hotel and converted to senior living use in 2004. It then underwent a million-dollar renovation from 2016 to 2018 by the prior ownership, including a full-facility generator in compliance with the new state regulations.
The community has 53 private units (licensed for 66 beds) and approximately 32,000 square feet. Occupancy based on units was 74%, but the buyer believes that rates may be 30% below market. The community, however, did have positive cash flow. Twin Light plans on starting some renovations that will include replacing the original tile roof, new windows in resident rooms, new flooring, fixtures and paint. As the renovations proceed, they will start pushing occupancy but will be sensitive to the COVID-19 issues with careful screening of move-ins.
While the price has not yet been disclosed, the community did sell in 2007 to The Hollinger Group for $3.8 million. In the current transaction, Brooks Blackmon and Alex Flores of Blueprint Healthcare Real Estate Advisors represented the seller, Invesque Inc. On the debt side, Sam Dendrinos and Kloie McCann of CIBC Bank USA provided the mortgage financing.