Lone Star Funds picked up a portfolio of five seniors housing communities in the Minneapolis, Minnesota MSA, representing the largest-ever seniors housing portfolio deal in the state, according to our database. Developed and owned by Minnetonka-based Roers Companies, a multifamily-focused real estate company, the “A” quality communities total 567 units of independent living, assisted living and memory care. There are plenty of amenities, including golf simulators, indoor parking (a must in Minnesota) and fitness centers.
They were all completed between September 2019 and April 2021, and occupancy was generally strong at the more established locations. The pandemic affected occupancy at one location that was previously stabilized, and the newest community was still in lease-up. Jaybird Senior Living operated one community, and Walker Methodist managed the other four, but Grace Management will take over operations across the portfolio.
Lone Star paid a reported $160 million, or $282,200 per unit, for the properties. That generated an IRR of 20% for the sellers, which have kept one seniors housing community in rural Onalaska, Wisconsin. Walker & Dunlop’s Alex Vice, Joshua Jandris, Brett Gardner and Mark Myers facilitated the sale.
