Developed in two phases in 2014 and 2020, Quail Park of Lynnwood comprises 252 units and sits on 15 acres in Lynnwood, Washington (Seattle MSA). The first phase featured 85 independent living/assisted living (ranging from 364 to 1,031 square feet) and 45 memory care units (ranging from 374 to 469 square feet). The community was fully leased with a waitlist. The second phase, through two expansions, added 96 AL apartments and 26 IL units split among 13 3,500-square-foot duplex cottages. Of the new AL apartments, 16 were enhanced, providing high-acuity AL services.
In 2017, a joint venture between CA Senior Living, Life Care Lifestyles and an affiliate of Goldman Sachs purchased the community for an undisclosed price. Its plans included an expansion that would add 109 units, which was completed in 2020. As part of the acquisition, CA Senior Living assumed an existing permanent loan from Freddie Mac. The sellers were affiliates of Living Care Lifestyles, which continued to operate the property.
Now, IRA Capital, in partnership with an institutional partner with substantial dry powder available, has acquired the senior living community through an all-cash transaction from the CA Senior Living/Life Care Lifestyles joint venture. At the time of sale, the community’s occupancy was hovering around the mid-80s, with $5 to $6 million a year in NOI. Over the past several weeks, the community’s performance has also increased.
The programmatic joint venture intends to invest additional capital to update common areas and amenities. IRA anticipates closing on another $325 million in new investments over the next 30 days as it is expanding its healthcare portfolio and is committed to addressing the needs of the elderly community. These acquisitions mark the latest development for IRA’s rapidly growing healthcare real estate platform. JLL handled the transaction.
