A senior living community in Grand Rapids, Mich. recently sold for $21.5 million at a 10.2% cap rate to a Maryland-based company that has a master lease agreement with a real estate investment trust.
The Heather Hills Retirement Village & Care Center campus features an independent and assisted living community along with a skilled nursing facility. The 193,146-square-foot retirement village has 171 units and was built in 1974, although it has undergone many renovations and additions between 1995 and 2007. The 30,677-square-foot care center has 60 licensed beds and was built in 1976, with additions in 1983 and 1996.
The community sold for $93,074 per bed/unit and had a net operating income of nearly $2.2 million and revenues of more than $8.4 million last year. It was sold by a husband-and-wife team from Florida that owned and operated the facility for the last 20 years. Despite the buyer being based in Maryland, one of its owners lives near the Grand Rapids community, which helped the company succeed in its bid for the property.
Evans Senior Investment, headquartered in Chicago, represented the seller in the transaction.
Written by Alyssa Gerace