Newmark announced its August activity, which totaled around $300 million of transaction volume. The largest deal was the sale of four seniors housing communities owned by Spectrum Retirement Communities in the Columbus, Ohio MSA to an undisclosed buyer. Opened in 2017 and early 2018, the portfolio totals 514 units of independent living, assisted living and memory care. It was around 60% occupied as of this summer.
There was another August portfolio sale that we covered earlier this month, plus the sale of a CCRC in Northridge, California. But Newmark also represented Healthpeak Properties in the sale of its 163-unit community in Santa Rosa, California. Previously operated by MBK Senior Living, the community was built in 2006 with 163 units of independent and assisted living. Occupancy had dropped from 87% in July 2020 to the mid-60s by this summer, and cash flow understandably dropped as well. LCS and Focus Healthcare Partners joint ventured to acquire the property for $46.5 million, or $285,000 per unit, at an in-place cap rate in the low-4.0% range (over 6.0% based on stabilized financials). LCS is replacing MBK as the operator.
