Seniors Housing Weekly Update - Seniors Housing Portfolio in New England Sells For Top Price

January 27, 2015

January 27, 2015. 60 Seconds with Steve Monroe. Nine properties in three states sell for over $500,000 per unit, more than doubling in value in 10 years...

Seniors Housing Portfolio in New England Sells For Top Price

Patient capital in seniors housing can certainly reap its rewards. Take the case of Boston-based Intercontinental Real Estate, which purchased nine senior living communities in New England from BayNorth Capital in 2005 for approximately $225,000 per unit. The one constant in the portfolio was Benchmark Senior Living, which was a minority co-investor with BayNorth and managed the portfolio. With the sale in 2005, they remained as the manager, and also stayed in as a co-investor. The portfolio has now been sold again, but for about $521,000 per unit. Individual properties have sold at a higher price, but not many. While we are sure the financial metrics work for the buyer, apparently Health Care REIT, the fact that a portfolio has more than doubled in value from what at the time was considered to be a high price, says a lot about where the market has gone since 2005. Does this transaction represent sort of a market peak? Perhaps, but why don’t you join me on February 26 for our webinar where we will be discussing what defines a market bubble, whether we are close to one or whether the ride will continue past 2016.

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