Scottsdale, Arizona-based real estate investment fund and DST sponsor Inspired Healthcare Capital capped its active acquisition year with a December deal. The firm acquired Dancing River, an 84-unit assisted living/memory care community in Grapevine, Texas. Evans Senior Investments announced its involvement in the deal earlier in the month, representing the institutional private equity seller.
Built in 2010, Dancing River saw its occupancy drop from 93% to 70% during the pandemic. However, census rebounded to pre-pandemic levels just before marketing began, and the community boasted a 35% margin in early 2022. There is also upside in rent increases, meaning that the operating margin could improve even more under Inspired Healthcare Capital’s guidance. The property sold for $25 million, or $298,000 per unit.
This deal, plus the firm’s November acquisition of Thrive at Augusta in Augusta, Georgia, puts Inspired Healthcare Capital’s 2022 activity at 12 transactions comprising 13 communities and 1,366 total units acquired throughout the year, and total spending surpassing $400 million. Located in eight states, Inspired’s new communities were built in the last 10 years and were all stabilized assets.
Going into 2023, the company will still have its eyes on acquisitions, if the debt markets allow. It will still target mostly stabilized assets, in addition to some “light” value-add opportunities.
