We have recently reported on some larger transactions from the Newmark team, but they have also closed some smaller ones. In late November, the team closed on the sale of a 150-unit active adult community in Texas. The community was built in 2015 and has 150 units. They went to market in later 2019 but then the pandemic interrupted the process.
That did not deter buyer and seller, as they waited it out for occupancy to get to 92%, which it did, and the deal closed. The price was $57.75 million, or $385,000 per unit, and came with an in-place cap rate close to 4.5%. Greystar will remain as the operator. Newmark and The Carlyle Group, the owners of Greystar, will be on our webinar next month as we delve into the current state of the active adult market and what the post-pandemic world will look like for values and market demand.
A few months earlier, Newmark sold a pair of assisted living/memory care communities in Connecticut for the REIT landlord. The buildings were about 20 years old, and one of them had some significant occupancy issues. The combined price was $10.75 million, or $72,100 per unit, reflecting the occupancy problems at the larger of the two properties.
We expect to be hearing from Newmark in the coming days with at least one more deal, and then several more in January. It looks like they have a good start on 2021.
