Jeff Binder of Senior Living Investment Brokerage sold a small entrance-fee independent living community in the St. Louis suburb of Webster Groves, Missouri. He represented a long-time seniors housing developer based in the area who was looking to retire.
Featuring just 33 units, Pacific Place Senior Living was built in stages in 1987, 1996 and 1998 within restaurants and shops in downtown Webster Groves. All but five of the units had an entrance fee, with those five being rentals, and the community was fully occupied. It also boasted a 45% operating margin, even when not including the additional revenue derived from turning a unit over with a new, substantially higher entrance fee.
A Midwest, not-for-profit owner/operator based in St. Louis bought the community for an undisclosed price and assumed the existing entrance fee liability. It is stepping into a humming operation and also has the advantage of owning a larger independent living community just one block away from Pacific Place, which should bring scale and improve operations even further.
