Marcus & Millichap Sells Two Pa. Senior Housing Communities for $7.85 Million

Real estate investment services firm Marcus & Millichap recently sold two senior housing communities, both located in suburban Pittsburgh, Pa., for a total of $7,850,000.

The first property, Concordia of Franklin Park (formerly Pristine Pines of Franklin Park), is a 56-unit, 100-bed licensed personal care home with a 60% occupancy rate located in Sewickley, Pa. It sold for approximately $6.8 million.

The second property, Concordia of Wexford (formerly Pristine Pines of Wexford), is a 28-unit, 56-bed licensed personal care home located in Wexford, Pa. The property sold for $1.05 million and has an occupancy rate of 54%.

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Concordia Lutheran Ministries, based in Cabot, Penn., bought both the properties with cash from the seller, an undisclosed private equity fund with offices in New York and Dallas.

The Sewickley community is located on several adjacent acres of land, and Concordia is planning a large expansion.

“This transaction was a win-win for everyone involved,” said Jacob Gehl, a first vice president at Marcus & Millichap. “Our sellers were able to realize a very attractive return for their fund investors, and the buyer saw the long term value in stabilizing and expanding the operations. Everyone involved in the sale benefited, including the residents and the staff.”

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Investment specialists Benjamin Firestone and Jacob Gehl, both of Marcus & Millichap’s Chicago downtown office, had the exclusive listing to market the property on behalf of the seller, and also represented the buyer. Broker Spencer Yablon assisted in closing the transaction.

Written by Alyssa Gerace