Merrill Commercial Real Estate arranged the sale of a 301-unit seniors housing community in Phoenix, Arizona with a unique history. Originally built in 1986 as a hotel, the 300,000-square foot building had 168 guestrooms where every unit was a two-room suite. After a $20 million capital improvements/conversion project by an independent owner/operator, it now features 301 units of independent living and assisted living. It is billed as a “resort-style” community with two outdoor pools, tennis courts and other amenities. A development group motivated to increase their footprint in Arizona paid $45 million, or $149,500 per unit, at a 4.5% cap rate, for the community. Tyler Merrill led the transaction.
Interestingly, the property is one of several in North Phoenix that were converted from hotels to senior living. That included the 166-room Plaza Inn & Suites becoming Bridgewater Assisted Living, and the former 126-room Country Inn & Suites turning into Deer Valley Senior Living.
