Working on behalf of a publicly traded REIT, Mike Garbers and Cody Tremper of JLL Capital Markets handled the sale of four assisted living/memory care communities across two transactions. The first deal, which closed in October, involved two communities both built in 2000 in affluent Atlanta submarkets. Totaling around 135 assisted living and memory care units, the communities were occupied in the high-70s but were losing money. The undisclosed buyer will replace the current management company with two separate operators. There was no disclosed purchase price.
Second, Garbers and Tremper sold two AL/MC communities in the Houston, Texas area on behalf of a publicly traded REIT. This time, the outgoing operator will be replaced by the owner/operator buyer, which was not disclosed. Built in the mid- to late-1990s, the buildings featured a combined 113 units. One of the buildings received a recent renovation, but both were in decent condition. Neither commanded the highest rents in their respective markets, and despite occupancy in the low-90s, high expenses resulted in an operating margin under 5%. A seller note helped get the deal closed. There was no disclosed purchase price.
