Last week, MBK Senior Living acquired the second property of a two-site portfolio in the Phoenix, Arizona MSA, and The Knapp-Stahler Group of Marcus & Millichap handled the deals on behalf of the seller, Texas-based McFarlin Group. Built in 2017 as the first Surpass Senior Living (McFarlin’s operating platform) in Arizona, the 83-unit assisted living community will be renamed from Mariposa Point of Gilbert to Sky Ridge. Located adjacent to an active adult community called The Aspens at Mariposa Point, it was developed at a cost of $18 million, or $217,000 per unit, with financing provided in part by Piper Jaffray & Co. The project was part of a four-property development plan for McFarlin Group in the Phoenix MSA, all of which opened between 2017 and 2018.
MBK bought the first one of these properties, located in Mesa, in November 2021, and the Gilbert acquisition did not close until February 22. Exact details were not disclosed, but we understand the pandemic caused occupancy to drop. Few communities were spared from that. And in the current operating environment, census was not recovering quickly, although there was still some positive cash flow. As such, the settled purchase price was below replacement cost, or just above $200,000 per unit. The acquisition is part of MBK’s reported strategic growth plan toward operating 10,000 units, and in less than a year, MBK has doubled its footprint in the Phoenix MSA to six communities. Nick Stahler and Hap Knowles handled the transaction.
