DETROIT — Evans Senior Investments (ESI) has arranged the sale of two assisted living and memory care communities in the northern suburbs of Detroit.
A regional owner-operator sold the assets to an operator looking to expand into Michigan for $38.3 million, or $314,000 per unit.
With each community being built between 2019 and 2020, the properties were smaller in size, with fewer than 65 units at each community. This allowed for above-average performance during the COVID-19 pandemic. At the time of marketing the portfolio was 88 percent occupied and boasted a 34 percent net operating income margin.
As of January 2022 the seller implemented inflation-based rental rate increases for existing residents that averaged an increase of 12 percent.
The buyer paid a capitalization rate of 6.5 percent based on trailing net operating income at the time of marketing.