March 17, 2017, Steve Monroe, Senior Care Investor - An undisclosed institutional buyer purchased a 92-unit assisted living/memory care community in Acworth, Georgia, with the help of an acquisition loan arranged by Aron Will of CBRE. A life insurance company provided the $22.5 million financing, which came with a five-year term, a fixed interest rate and 24 months of interest only.
This community has had a brief but strong operating history. Owned by CNL Healthcare Trust, it was developed by Solomon Development for about $2.8 million under budget (altogether, approximately $19 million, or $206,500 per unit). When it opened in July 2014 with 68 assisted living and 24 memory care units, it was already 50% preleased and reached 100% occupancy by August 2015. Annualized 2016 revenues from January to April, 2016 also beat out the projected budget for 2016, although just slightly, with $5.4 million. Trinity Lifestyles Management, Solomon’s wholly owned management arm, has been (and will continue to be under a third-party management contract) in charge of operations.
Now, the community is selling for $34.25 million, or $372,283 per unit. That’s a healthy return for the sellers, and clearly a reward for a lot of hard work.