The market for high-quality seniors housing communities is rebounding, as many owners chose to sit of the sidelines and rebuilding occupancy before making the decision to sell. Last month, Newmark sold two Class A, stabilized seniors housing communities in Florida, working on behalf of the seller, Jacksonville-based Vestcor Communities in the process.
The deal included HarborChase of Mandarin in Jacksonville, a 114-unit community that was developed by Vestcor in 2018, and The Grove at Canopy, a 118-unit luxury senior living community in Tallahassee also developed by Vestcor in 2019. Occupancy at the Jacksonville property dipped to 88% during the pandemic but rebounded to 95% and above soon thereafter. Meanwhile, the Tallahassee community experienced strong lease up, and both communities were 100% occupied at the time of the deal. Not many operators can say that these days. HRA Senior Living operates the Jacksonville location, and Starling Senior Living operates the other.
The buyer was not disclosed, but both operators will stay in place. Newmark handled the transaction and helped arrange a new Fannie Mae loan to fund the deal.
