We highlighted a couple of Georgia deals from Newmark last week, but some details have been revealed since then. One seniors housing community in St. Simons Island consisting of 68 assisted living and 24 memory care units sold from one joint venture to another in a deal valued at $18.2 million, or nearly $200,000 per unit. AIG Global Real Estate had developed the property with Thrive Senior Living (also the operator) in 2015. Occupancy had fluctuated between 50% and 70% in the last several years, with some key employee turnover prior to COVID contributing to the sub-par census. Winterpast Capital Partners and its affiliate Vitality Living acquired the property, with Vitality taking over management.
Newmark also sold an 85-unit assisted living/memory care community in Athens, Georgia. This community experienced no such operational difficulty. It opened in July 2020, reached 40% occupancy within its 60 days and was 90% occupied at the time of the sale. Such fill-up velocity would be impressive in a normal year, let alone during a pandemic. A 1031 exchange buyer purchased the community for $29.5 million in cash, or $347,100 per unit. The seller was a small owner/operator that developed the community and will stay on to manage under a long-term contract.
