Amy Sitzman and Giancarlo Riso of Blueprint facilitated the sale of a full continuum, Class-A asset in North Ogden, Utah. Opened in 2019, The Lodge at North Ogden has 22 independent living, 70 assisted living and 30 memory care units. The community exhibited consistently strong cash flow and historically successful operations. Plus, there is expansion potential through the ability to develop 26 independent living cottages.
During the marketing process, the outgoing operator made some adjustments to the go-to-market strategy that resulted in a drop in occupancy and a shift in overall performance metrics. Despite this, the process generated nine competitive offers after emphasizing the community’s strong track record and status as the newest asset in the market. Bids were from a diverse group of buyers ranging from REITs to private equity investors.
A non-traded REIT partnered with a regional operator that has an existing market presence to acquire the asset, marking the first deal for the new joint venture partnership. It was a 60-day process, with a concurrent 30-day diligence and PSA negotiation period followed by a 30-day operations transition and close.
According to LevinPro LTC, the asset changed hands a few months following its 2019 opening, trading for $30 million, or $245,900 per unit. MedCore Partners and Trinity Private Equity Group were the buyers, with the acquisition being the fifth and final property in a $130 million portfolio acquisition completed by MedCore in 2019. The portfolio comprised five properties and a total of 531 units. Watermark Retirement Communities took over operations across that entire portfolio.
