Sugar Hill Sale Saga
What do you do with a nine-story, 169,410-square foot distressed senior care home? You sell it for about $500 per square foot to a real estate investment firm with plans to convert the building to luxury apartments, of course. That was the case for Haysha Deitsch, who purchased a Brooklyn building in 2006 for $40 million and just closed this Fall on an $84 million sale to New York City-based Sugar Hill Capital Partners. However, things were not all smooth in Mr. Deitsch’s 10-year ownership, especially since 2014 when he and Sugar Hill initially agreed on the sale. Following that agreement and a 90-day notice to residents to vacate, tenants’ families sued Deitsch for allegedly trying to... Read More »Riverside Refinance
Three years after buying a 207-unit independent living community in Riverside, California, Capitol Seniors Housing (CSH) is refinancing it, at a much higher value. The private investment firm bought Olive Grove (now Welbrook Arlington) in August 2013 for $16.25 million, or $76,651 per unit. Back then, the property consisted of two independent living buildings that were built in 1980 and 1984. Occupancy was only in the high-60% range, with average IL monthly rates of about $1,600. CSH clearly saw potential in the property, and invested between $5.5 and $6.0 million to convert one building to assisted living and memory care and add a separate dining room to that building (to be serviced by... Read More »Greystone gets it done
We’ve written plenty on the memory care (and assisted living) development boom going on in Texas, especially in the markets of Houston, Dallas-Fort Worth and San Antonio. And we have wondered how, if everyone and their neighbor is building memory care in those areas, the communities would fill up. That will be the challenge for a private investor who just bought four recently-built stand-alone memory care communities previously owned and operated by U.S. Memory Care. Located in Cedar Park (Austin MSA), Houston, Plano (Dallas MSA) and Colleyville (also Dallas), these communities were built between 2013 and 2015 with 70 units and 75 beds. U.S. Memory Care also included a beauty/barber shop,... Read More »
Mobile Works
Brooks Minford, Rob Reis and Douglas Danny (with an assist from Eddie Greenhalgh) of Marcus & Millichap recently represented the owner of a 132-unit senior living community in its sale to a Jacksonville, Florida-based buyer. Located on 27 acres in Mobile, Alabama, complete with walking trails, this community was built in 1998 with 84 independent living units (including 22 single-family homes), 32 assisted living units and 16 memory care units. The community sold for $9.65 million, or $73,106 per unit/bed, which is low for seniors housing. For more information, check out the January issue of The SeniorCare Investor. Read More »High price for the Upper West Side
Seniors housing deals valued above $500,000 per unit are rare. In fact, in our M&A database dating back to 1993, only nine have been announced in the U.S. (all since 2015). And up until this month, we only had one domestic deal above $600,000 per unit, which was Health Care REIT’s acquisition of three senior living communities in the Boston area for $150 million, or $652,174 unit. Now, a single 239-unit independent living building in New York City’s Upper West Side is selling for approximately $150 million, and surpassing $625,000 per unit. The Esplanade had been owned by the Scharf family, an owner/operator of senior living communities in the New York City MSA, since they bought it... Read More »Schedule a demo
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