There was a cap rate deal in Texas at the start of August, a relative rarity in today’s market. Newmark closed the sale of Heartis San Antonio, a 109-unit assisted living/memory care community in San Antonio, Texas, to an undisclosed buyer. The community was developed by Caddis Partners, the seller, in 2016 and had been a strong performer ever since opening, even through the pandemic. It was nearly full at the time of the sale, with a healthy operating margin.
With so few performing properties available for sale these days, interest from buyers was strong, and we understood pricing reached the mid-$30 million range. The community also sold at a cap rate in the high-6s, a very good valuation for the seller given today’s cost of capital.
