Nick Stahler and Hap Knowles of Institutional Property Advisors, a Marcus & Millichap company, announced their role in the sale of MorningStar at Arcadia, representing both the buyer and seller in the transaction. Built in 2016, the Phoenix, Arizona-area community features 108 units and 125 beds of independent living, assisted living and memory care. Operations were strong, with occupancy above 85% and a margin around 28%. The previous Colorado-based operator had run a tight ship and maintained consistent revenue levels throughout a receivership sales process.
Stahler and Knowles had been first hired to run a traditional marketing capital, and they secured multiple competitive offers on behalf of the national private investment group seller. However, the transaction transitioned to an SEC-sanctioned federal receivership mid-sale, and IPA facilitated a formal auction. Emerging from multiple competitive bids, the buyer, 12-North, was backed by Sabal Capital, a Los Angeles-based private equity firm, and went non-contingent with hard money down at the signing of the PSA shortly after the federal auction concluded. The community sold for $28.25 million, or $261,600 per unit.
