The team at Newmark represented a family owner in their sale of Byron Center Manor, a 102-unit senior living community in Grand Rapids, Michigan. With the sale, the family exited the industry, except for a piece of seller financing that they provided on the deal.
The Cook Family built the community in stages over the years, opening the independent living portion in 1989, followed by the assisted living in 1992 and the memory care unit in 2003. In the last several years, the community operated at around breakeven, with nearly $5.5 million of in-place revenues at the time of marketing. Occupancy was 90%, but a new owner could trim expenses to help make the community profitable going forward.
Cardinal Senior Management emerged as the buyer, paying $9.5 million, or $93,100 per unit. To finance the deal, they obtained a senior mortgage from a local bank and a subordinate piece of seller financing. Cardinal is looking to grow its Michigan portfolio, as well as its reach in the Northeast, so the next year could bring a lot of opportunity for the growth-oriented company.
