On Dec. 31, 2012, Virtus Real Estate Capital, LP closed its first senior living acquisition, an independent living property in Warren, Mich., in a $20.8 million transaction at a T-12 cap rate of 8.41%.
Park Place at Heritage Village is a 136-unit/158-bed, 200,000-square-foot independent living property built in 2007 and located in a high-end suburb of Detroit.
At time of sale, the community had a 97.3% occupancy rate and had an appraised value of $22.3 million.
Virtus has partnered with American House to operate the community.
“We couldn’t have picked a better community to be our first senior living transaction. It’s incredibly beautiful, in great condition, is a price leader in the market, has a great reputation, and is full. And in partnering with the largest and best operator in Michigan—American House—we believe this community will continue to thrive,” said Aaron D’Costa, director of senior living acquisitions at Virtus.
Written by Alyssa Gerace