Looking for senior housing investment opportunities? While its not the first auction of an assisted living facility (nor will it certainly be the last in 2009 and 2010), Tranzon Integrated Property Group ("Tranzon") has announced that it has been engaged to conduct an auction of the property known as the Adel R. Coccomo Residential Center in Middlesex County, Connecticut. The property, has 72 Units / 90,000 SF +/- on 12 + Acres, is currently operating and was completed in early 2008 at a cost of $14,500,000 and has been authorized to sell at a reserve price of $3,500,000. The auction, which has a dedicated website at www.alfauction.com, will be held on Wednesday, August 5th at 3PM.
"This property is a tremendous opportunity for an Assisted Living Facility operator or real estate investor to acquire an underperforming but premium asset at a distressed price," said Joshua Olshin, President of Tranzon. "The potential upside here for someone to properly market and turn-around this asset will make this auction very exciting. There are a lot of people out there with cash or captive financing available just waiting for opportunities like this to hit the market."
Oren Klein, Vice President and Auctioneer at Tranzon, analyzes the situation: "Seniors make up 13.4% of the Connecticut population which is well above the national average. More significantly, competing facilities in the area offer residents less competitive packages and are still operating at close to 100% occupancy." Experienced operators out there agree that a properly implemented and financed marketing campaign can fill up a center like this in a very short time period. Klein adds, "After incurring significant construction costs, the Owner has unfortunately been unable to devote the appropriate resources towards attracting tenants in the way that a new and better capitalized owner would be able to."