Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Parkside Assisted Living and Memory Cottage, a three-story 65-unit/94-bed seniors housing community in Port Charlotte, Florida. The community was developed by a local neurologist and managed by his family upon his untimely death in early 2017. Nevertheless, it opened in October 2017 and reached 62% occupancy prior to the pandemic. However, occupancy decreased through 2020 and reached its low at the end of 2021.
The buyer is an affiliate of Dallas-based McFarlin Group, which develops, owns, and asset manages senior housing communities throughout the Sun Belt. For an undisclosed price, McFarlin acquired the community by leveraging its $100 million distressed asset fund, which launched in 2020 to acquire properties for well below replacement cost. The group had already planned to target distressed assets heading into 2020, and the pandemic only added fuel to a deal-making fire created by a combination of supply and demand imbalances in the southern United States, the recent explosion of new construction, a flood of investors entering the space, and the trend of seniors delaying transitioning to senior housing.
McFarlin is targeting single asset opportunities valued between $2 million and $20 million, and plans to invest in capital expenditures to modernize properties. Last year, McFarlin became a sponsor of Private Wealth Global, an investment platform focused on core-plus and value-add opportunities in the U.S. and Europe, particularly multifamily and health care. The move gives McFarlin access to investors in South America and Europe for the fund, which they expect to exit and close by 2027.This is the group’s first purchase in Florida. Going forward, Parkside Assisted Living and Memory Cottage will be managed under the Solterra Senior Living brand. Michael Turkiewicz represented the seller and McFarlin Group in this transaction.
