HomeMy WebLinkAbout2015 12-04 Seniors housing facility sells for $30 million in Minensota RE JOURNALS 1T/712015 REJarnnls.com n Seniws ho�asirg faciliry sa'IS fa 530 mill��on�in M�imesole n Print
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Seniors housing facility sells for$30 million in Minnesota
Posted By Staff Writer On December 4,2015 @ 6:41 am �No Comments
The Shores of Lake Phalen,an independent living,assisted living and memory care community
located in Maplewood,Minnesota,has sold for$30 million or$285,714 per unit,in a recen[
trensaction to a non-traded REIT.The property features 22 independent living uni[s,51 assisted
living units and 32 memory care units.
Constructed in 2011,The Shores of Lake Phalen is a true class A asset.Each of the communitys
105 units were buil[with the future of Seniors Housing in mind,featuring private bathrooms,
modern finishes,and expansive square footage.The facili[y also features underground parking,an
impressive lobby,and immediate access to the neighboring lakes and the adjacent Gateway State
Trail for resident and visitor enjoyment.
In September of 2014,after a two-year lease up period,the facility successfully established a
pattern of stabilized,90%+occupancy.This offered the chance for an investor to step into an
asset with both minimal leasing efforts and capital expenditure spend,ensuring immediate
financial yield.
In a competitive bidding process,a non-traded REIT emerged as the winner.A na[ional opera[or
will step in to operate and manage the facility.The fnal cap rate of the facility was 6.3%on the
2015 budget NOI of$1.9M.
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