As 2023 comes to a close, a spate of portfolio deals have closed between large, institutional parties. We usually see the end-of-year rush of closings, usually for tax purposes, but it has been unique for 2023 to see the larger size of some of the deals, as well as the institutional buyers, which have largely sat on the sidelines this year.
Newmark’s latest closing featured seven seniors housing properties in three states: Michigan, Pennsylvania and Virginia. They consist of 931 units, with independent living, assisted living and memory care services. The newly-constructed assets are considered Class-A communities in desirable locations. They also experienced positive leasing and operating margin trends, with strong rental rate increases. No other details were disclosed, but word on the street was that the portfolio was pricing in the $225 million range, or approximately $240,000 per unit. The portfolio was marketed as a value-add opportunity, so for the quality of the assets, that pricing would seem right.
The buyer and seller were not disclosed, but based on the size of the transaction must be large, institutional investors.
