A 48-unit memory care community in Clinton, Connecticut (New Haven MSA) has a new, New York-based owner/operator, thanks to the work of Steve Thomes, Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors. According to our M&A database Deal Search Online, this property previously sold in 2013 for $10.5 million, or $218,750 per unit.
Previously owned by the private equity firm Westport Capital, it was operating at roughly a 30% margin on approximately $3.2 million of revenues. Occupancy was also close to 100%, with rents ranging from $5,000 to $6,000 per month. So, things were going well. Not only that, the 10-year old community was substantially renovated in 2015 by the new owner, NorthStar Realty Finance, and operator, Peregrine Health Management.
Since then, NorthStar merged with Colony Capital and NorthStar Asset Management Group in 2017, and Senior Lifestyle Corporation took over operations. However, significant competition in the area recently caused operations to decline. Currently, the community is operated with rents starting at $6,900 per month, but the current occupancy is not known. So, Blueprint positioned the asset as a value-add opportunity, especially given the community’s location in an affluent submarket and below-market rates. Several competing offers yielded to a New York-based owner/operator as the acquirer. The licensure was transferred, and the deal closed in early July. The purchase price was not disclosed.
