Joint venture partners Harrison Street Real Estate Capital, REDICO and American House Senior Living Communities clearly eyed potential at a newly built independent living community in Wildwood, Florida (near The Villages). Built in 2013, the community features 173 units ranging in size from 500 to 1,090 square feet. Based on a 30% operating margin on approximately $5.3 million of in-place revenues, and occupancy of 90% at the time of sale, we have estimated the cap rate to be about 5.2%. Both occupancy and margins could be improved, with a good amount of hard work, of course. Since assuming management, American House has added private duty personal care services through Allegiance Home Care Services, Inc.
Capital Health Group sold the community for $30.5 million, or $176,300 per unit. Chad Lavender and Ryan Maconachy of Holliday Fenoglio Fowler handled the deal, just one of several the firm closed in a busy summer. More details will be featured in the October issue of The SeniorCare Investor.
