Real estate private equity firm Elevation Financial Group acquired a senior living community in Memphis, Tennessee with plans to make it a more affordable option in the area. Originally built in 1989, the property featured 155 units of independent living and assisted living. All of the AL units were vacant at the time of the sale, so Elevation will renovate, add kitchens and convert them. However, the entire community will be converted to an affordable senior apartment community.
There will be no income limit for residents, but rents will range from $735 per month for a one-bedroom, one-bath apartment to $860 per month for a two-bed, two-bath unit, including utilities. Before, rents started at $1,260 per month. The dining and laundry/housekeeping services will also be taken out. Cementing all of these changes, Elevation will also rebrand the community The Elevation at Autumn Ridge.
A REIT sold the property for $2.2 million, or $14,200 per unit, partially reflective of the vacant assisted living units and the needed capex. Interestingly, according to our M&A database Deal Search Online, the property sold in 1995 for $7.29 million, or $47,000 per unit. Back then, it provided independent living, assisted living and Alzheimer’s care.
