Strong investor demand drives pricing beyond seller’s expectations
Washington, DC – Keith Lipton, Avison Young Principal and Managing Director of the company’s Washington, DC office, announce today the sale of Sudley Manor House, a 78-bed assisted living and memory care community located at 7750 Garner Drive in Manassas, Virginia.
The $14.1-million sale is the second seniors-housing transaction brokered by the team in the past six months and continues Avison Young’s record of success as the dominant healthcare investment sales team in the region.
The seller, American Senior Living, LC, is the original developer of the facility and retained Avison Young to present the property to the marketplace. Avison Young Principals Jim Kornick, Matthew Clinebell and Chip Ryan, based in the firm’s Washington, DC office, positioned the property as value-add in spite of high occupancy.
“The property is located in a strong but underserved market, creating an opportunity to increase revenue through operations. Our job was to identify purchasers that were willing to pay the sellers for this potential,” comments Kornick.
More than a dozen investors submitted offers for the property. After a highly competitive process, Capitol Seniors Housing was selected as the buyer. The new owner has immediate plans to enhance the resident experience through an extensive capital-improvement program to refresh the facility and by retaining The Arbor Company to operate the community.
“The great interest we received from REITs, fund advisors and regional operators demonstrates the tremendous investor interest in well-located, senior housing communities,” adds Clinebell. “Many senior-living properties continue to be sold privately to the owners’ disadvantage despite wide demand from more institutional investors. By exposing the opportunity to a much wider audience, Avison Young was able to drive pricing beyond the seller’s original expectations.”
About Avison Young
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 1,500 real estate professionals in 58 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.
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