Last week we reported on the sale of a CCRC in North Carolina where Cushman & Wakefield represented the seller. Now, the C&W Boston office has closed on two additional senior living properties in high-value transactions.
The first one involved the sale of a 290-unit retirement community in Lantana, Florida, known as Carlisle Palm Beach. It has 144 independent living units, 90 assisted living units and 56 memory care units with average occupancy above 90%. It was built in 1999 and converted in 2014 to a full continuum IL/AL/MC community. Over the past five years the sellers spent $10 million converting IL units to AL.
The sellers were affiliates of Senior Lifestyle Corporation and AEW Capital Management, and the buyer was an affiliate of Bridge Investment Group. Senior Lifestyle will stay on to manage the community with an ownership stake as well. Independent living monthly rates range from about $4,200 to $5,500, assisted living about $5,000 to $7,000 and memory care about $6,500 to $7,500.
The property was last sold in 2011 for $53 million, or $171,000 per unit, when it consisted of 250 independent living and 60 assisted living units. Occupancy at the time of that sale was just 83%. Given the higher occupancy and the average rates, we believe the current sales price could have nearly doubled since 2011 to between $85 million and $90 million.
The second sale involved a 156-unit assisted living and memory care community in Northbrook, Illinois (suburban Chicago) that opened in 2014 and has been 100% occupied with a waiting list since the end of 2016. So much for occupancy issues. It sits on seven acres with room to build a stand-alone memory care community if the buyers have the interest. Currently, there are 116 assisted living and 40 memory care units. The sellers were again Senior Lifestyle Corporation and AEW Capital Management, and the buyer was Blue Moon Capital Partners, with Senior Lifestyle staying on as manager with a minority ownership stake.
The rates here are higher than the Florida property, with assisted living between $6,500 and $8,500 and memory care between $8,000 and $9,000. Maybe this can be called a Super Class A. Based on this information, the purchase price could have reached $100 million or higher, or more than $650,000 per unit, which would be a record for Illinois.
Richard Swartz, Jay Wagner, Jim Dooley and Caryn Miller of Cushman & Wakefield represented the sellers in both of the transactions. Combined with the North Carolina sale, our estimate is that all three sales totaled nearly $200 million to kick off September. Wagner, Aaron Rosenzweig and Tim Hosmer arranged the debt financing with Fannie Mae for the Florida acquisition, and they arranged debt financing with Northwest Mutual Life for the Illinois acquisition.
