Meiser Commercial Real Estate was engaged by DeShano Companies, a development company that specializes in apartments and entered the assisted living industry in 2016, in its divestment of ten seniors housing communities that it built in Michigan. Madison Meiser and Bill Meiser handled each of the ten, separate transactions.
This was a roughly 20-month closing process. First, in April 2023, an assisted living community in Coleman sold for $1.65 million, or $83,000 per unit. It was built in 2017 and features 20 units. The community was losing money at the time of sale, and was 70% occupied. It was sold through a land contract.
Next, in June 2023, a 20-unit assisted living/memory care community in Merrill that was built in 2019 sold for $2.25 million, or $112,500 per unit. Occupancy was 85% at the time of closing. The buyer was Hampton Manor, which used SBA financing to make the acquisition.
In July 2023, the same buyer that purchased the Coleman community purchased an assisted living community built in 2017/2018 comprising 20 units in Auburn for $2.15 million, or $108,000 per unit. At the time of closing, occupancy was 80% and it was breaking even. The community sold through a land contract.
Then, in November 2023, a 2023-built, 40-unit assisted living/memory care community sold in Imlay City. At the time of closing, occupancy was 90% in one half of the building that had been open, and the other 20 units were vacant, as they had just opened a few months prior. The buyer was Serene Gardens, which purchased the community for $4.5 million, or $113,000 per unit.
The next month, an assisted living community that was built in 2018 with 20 units sold in Grand Blanc. Occupancy was 80%, and the community was breaking even. The buyer was affiliated with Mid-Michigan Home Health & Hospice Care. The purchase price was $2.13 million, or $107,000 per unit. The transaction was funded through SBA financing.
In January 2024, an assisted living/memory care community in Vasser found a new owner. It was built in 2017 with 40 units. The community was performing well at the time of sale, and occupancy was 95%. The buyer was Michigan-based owner/operator, Comfort Care, which acquired the community for $5.1 million, or $128,000 per unit.
Next, in March 2024, the buyer with a presence in mid-Michigan purchased an assisted living community with 20 units in Birch Run for $2.03 million, or $102,000 per unit. It was built in 2019, and was under-performing with occupancy at 65%. The deal was financed through an SBA loan.
Finally, a 20-unit assisted living community in Oscoda that was built in 2019 sold for $1.52 million, or $76,000 per unit. Occupancy was 80% and NOI was negative at the time of the sale. At the beginning of marketing, occupancy was 65%, however, a new management team came in and started to turn around the community.
Two communities that were additionally sold with the help of Meiser and divested by DeShano, but were previously featured in LevinPro LTC were Plainview Assisted Living (which closed August, 2024) and Close to Home Saginaw (which closed January, 2024). Congratulations to the Meisers for the successful succession of closings.
