An institutional private equity group sold an 84-unit assisted living/memory care community in Grapevine, Texas (about 20 miles northwest of Dallas), to another private equity company based on the West Coast, with Evans Senior Investments handling the transaction. The property sold for $25 million, or $298,000 per unit.
Built in 2010, Dancing River saw its occupancy drop from 93% to 70% during the pandemic. However, census rebounded to pre-pandemic levels just before marketing began, and the community boasted a 35% margin in early 2022. There is also upside in rent increases, meaning that the operating margin could improve even more.
