CBRE National Senior Housing arranged acquisition financing for Lloyd Jones’ acquisition of River Bend Assisted Living and Memory Care in Rochester, Minnesota. Aron Will, Austin Sacco and Matthew Kuronen of CBRE worked on the deal. Built in 2014, the Class-A community has 89 assisted living and memory care units on 2.8 acres about 1.5 miles away from the original Mayo Clinic in Rochester. There are landscaped walking paths with direct access to scenic Zumbro River trails, and Lloyd Jones plans to enhance the property through technology and amenity improvements. In addition, it will implement an acuity mix shift, converting 16 out of the total 18 memory care units to transitional living units.
The sale closed on January 31 at a purchase price of $26.5 million, or just shy of $300,000 per unit. CBRE secured a $18.5 million, non-recourse, three-year floating rate loan with 18 months of interest only through a national bank. Post-closing, the community will continue to be third party managed by Cassia, which has managed the community since 2018.
The Wilkinson Family of Companies helped develop and co-owned the property as part of a joint venture with Rochester-based Titan Development and Investments. Good Neighbor Care Centers of Eugene, Oregon, which is owned by Wilkinson, managed River Bend since it opened in 2014. It cost an estimated $15 million to build the 81,000-square-foot community, or $170,000 per unit.
Under the name ALF Employer Minnesota LLC, Wilkinson bought out Titan Development’s stake as recently as November 2021 and became the sole owner for a reported $22.6 million—nearly $4 million less than they were able to sell it for only three months later. This is the first addition of a Minnesota property to the Lloyd Jones portfolio, but is part of a larger growth strategy for the real estate firm. After a recent purchase closed in Nebraska, the company has at least nine senior care assets under management, two new development projects, and several assets under contract to close in the coming months. Reportedly, their goal is to grow by 1,000 to 1,500 senior care units per year.
