Meiser Commercial Real Estate was engaged by DeShano Companies Inc. in its divestment of a seniors housing community in Auburn, Michigan. Built in 2010, Plainview Assisted Living comprises 20 assisted living and 16 independent living units on 2.9 acres. At the time of sale, it was 100% occupied, with 75% private pay and 25% Medicaid. Revenues were $1.04 million, and NOI was $98,000.
The assisted living and independent living components shared a parking lot, and DeShano wanted to sell both components as a package. If sold separately there would have had to be a shared-use agreement in place. It was challenging to find a buyer that specialized in both AL and IL, however, the deal successfully closed on July 29.
The ultimate buyer was an owner/operator, which intends to convert the independent living units into assisted living and rebrand the community as Hampton Manor of Auburn. The purchase price was $2.5 million, or $69,000 per unit. The executive director left during the sale process, resulting in the buyer coming in early and beginning operations prior to closing. Bill Meiser and Madison Meiser handled the transaction.
