Senior Living Investment Brokerage’s Brad Goodsell, Jason Punzel and Vince Viverito recently closed the sale of a 150-unit active adult community in Memphis, Tennessee. Built in 1985 and sold for $8.55 million, or $57,000 per unit, this community exchanged hands with a 94% occupancy rate.
The undisclosed seller of Tranquility at Hickory Hill offered to rebuild 10 extra units destroyed by a fire, bringing the total unit count to 160. Tranquility, sitting on 13 acres with 162,000 square feet, had an annualized revenue of $1.25 million and $500,000 of EBITDA, resulting in a 5.9% cap rate at the time of closing. The buyer is a multifamily-focused investment group based in southern California.
The same trio also branched out and sold a 42-unit behavioral health facility in Gresham, Oregon, about 20 miles east of Portland. Purpose-built in 2011, the facility recently received an increase in their state contract to now include all 42 beds, which will bring occupancy to 100% thanks to strong demand. That should also result in higher revenues, naturally.
The seller was a local owner, with this being their sole behavioral health asset. A private equity group based out West and looking to expand their portfolio ended up as the buyer, paying an undisclosed amount.
