Active adult deals have been relatively rare this year, as interest rates rose above AA’s typical cap rates, but we’ve seen a smattering of older assets trade in recent weeks. Institutional Property Advisors, a division of Marcus & Millichap, announced the sale of Encore at Buckingham, a 242-unit active adult community in Richardson, Texas. Built in 2001, the asset has four stories in a garden style, with a swimming pool, heated spa, movie theater, elevator and library. The average unit size is 806 square feet.
Occupancy was strong in the past year, averaging 98% occupancy. And it was operating at a healthy margin, with some room to improve. The asset sold for $36.2 million, or $149,600 per unit, at a 5.3% cap rate. Justin Knapp and Nick Stahler of IPA Seniors Housing partnered with the IPA Texas Multifamily team bringing a more diverse buyer pool of multifamily and seniors housing buyers to the table.
