We had reported a few months ago that Newmark (formerly Newmark Knight Frank) was going to have a big fourth quarter. And they have, with five sales transactions worth well in excess of $400 million, plus a few financings, and we still have a few weeks to go before the end of the year, and a few more deals.
The largest sale this quarter, which we previously reported on, was the six communities in Massachusetts that sold for about $200 million in a recap of the portfolio previously owned by Welltower. Most recently (early December), however, was one of the larger skilled nursing portfolio sales of the year. Details will be available soon, but let’s just say it will be the third largest SNF deal by dollar value this year, and we have not heard of another large one coming before year end.
A few weeks ago, the Newmark sales team sold a 150-unit active adult community in Colorado on behalf of Carlyle Group and its affiliate, Greystar. Built in 2015, occupancy has recently averaged 92% and it sold for $57.75 million, or $385,000 per unit. That results in a cap rate of about 4.5% on in-place cash flow. Greystar will stay in as the manager in the recapitalization.
Then in October, the Newmark team sold a large senior living community in Missouri with 179 units that was built in 1986. There are 116 independent living units and 63 assisted living units and it was formerly operated by Capital Senior Living. The sales price came in at $32.5 million, or $181,500 per unit, which is not bad considering the current environment and that occupancy was about 75%. The Newmark team also placed the debt of approximately $25 million on the deal with Regions Bank.
There are a few more deals that you may have missed, so stay tuned.
