Meiser Commercial Real Estate recently closed two separate seniors housing transactions. First, in a transaction that closed before year-end, an owner/operator engaged Meiser in its divestment of an assisted living community in Clinton County, Michigan. Built in the 1980s and remodeled since then, Serene Gardens of DeWitt comprises 58 beds, and occupancy was 98% at closing. The purchase price was $4.0 million, or around $69,000 per bed. The buyer financed 70% of the acquisition cost through a local bank.
Next, DeShano Companies Inc. brought on Meiser in its divestment of two assisted living communities in Michigan: Close to Home Saginaw in Saginaw and Bay City in Bay City. DeShano, a development company that specializes in apartments and entered the AL industry in 2016, is exiting the industry with the sale. Meiser has sold 14 of DeShano’s assisted living communities over the last three and a half years. Close to Home Saginaw was originally built in the 1950s as a skilled nursing facility. It was renovated in 2018 and has 54 AL units. Bay City was originally built in the 1960s as an elementary school and was also renovated in 2018. It comprises 36 AL units. The purchase price for these two communities was $5.8 million, or $64,400 per unit. This was an all-cash, seller carryback transaction with 65% cash and 35% from a seller note. Closing was pushed back by three weeks due to an insurance issue in which there would be an increase of $200,000 per year. Meiser did its due diligence and secured the buyer with an increase in the premium of just between $20,000 and $30,000 per year.
Bill Meiser and Madison Meiser handled both of the transactions. Meiser has closed 14 transactions in the last three years, or $41.16 million in volume.
