A Class-A, well performing seniors housing community in North Haven, Connecticut, sold for $41.1 million, or around $330,000 per unit. The seller, Columbia Pacific Advisors, capitalized on an opportunistic disposition to lock in returns and return capital to investors early in its fund’s life.
Built in 2019, The Landing of North Haven features more than 120 units of assisted living and memory care on an 11-acre campus. Lease-up was solid through the pandemic, as were rates and margin, highlighting the advantages of Class-A buildings in good locations during the pandemic recovery and ensuing inflation. So, as occupancy approached stabilization, there was meaningful cash flow and a very positive performance trend.
A strong and diverse bidder pool that included well known national private equity firms, owner/operators and a family office bolstered market pricing and ultimately resulted in Inspired Healthcare Capital, a national DST sponsor, to emerge as the buyer. Inspired offered strong terms, low-leverage execution and would retain the existing operator. Alex Florea, Steve Thomes and Kory Buzin of Blueprint Healthcare Real Estate Advisors handled the transaction.
This was Inspired Healthcare Capital’s sixth DST closing of 2023 and 27th DST closing in the past three years. The offering is structured to generate investor distributions at an annualized rate of 5.25%.
