Sale of $40 Million New England Portfolio Closed by Marcus & Millichap

Marcus & Millichap Real Estate Investment Services recently arranged the sale of a $40 million portfolio consisting of two New England assisted living care facilities.

The first property, Village at Fillmore Pond in Bennington, Vt., sold for $20.9 million, and has 101 units consisting of 30 independent-living units units, 45 assisted-living units, 12 memory-care units and 14 newly built independent-living cottages. The other property, The Inn at Spruce Wood, in Durham, N.H., sold for $19.1 million and has 100 units consisting of 35 independent-living units and 65 assisted- living units, 25 of which are dedicated to memory care.

“Seniors housing assets with consistent returns are becoming increasingly attractive to investors,” says Michael Pardoll, a senior vice president of investments in the firm’s Charlotte, N.C. office. “Facilities with assisted-living, independent-living and memory-care components remain the most sought-after seniors housing properties.”

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Pardoll, along with senior associate Christopher Hyldahl, represented both the seller, NE4 Senior Living Facilities LLC, and the buyer, Emeritus Senior Living, in both transactions.

The portfolio continued to perform well even during the market crisis.

“Each property in this portfolio has sustained occupancy levels greater than 90 percent through the economic downturn, while increasing rents between 4 percent and 6 percent annually since 2007,” says Hyldahl. “Currently, the two properties have a combined total of 201 stabilized units, with expansion potential for another 16 cottages at the Bennington, Va. facility.”

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Written by Alyssa Gerace