- Evans Senior Investments reports that an undisclosed non-traded real estate trust (REIT) recently acquired The Shores of Lake Phalen, a 105-unit independent living, assisted living, and memory care community located in Maplewood, Minn. The Chicago-based investment banking firm says the REIT was the winner of a competitive bidding process, paying a price of $30 million, or $285,714 per unit. The property includes 22 independent living units, 51 assisted living units, and 32 memory care units. Constructed in 2011, Evans says that the “Class A” facility also includes underground parking and is in close proximity to neighboring lakes, trails and other amenities. Evans says that in September 2014, after a two-year lease up period, the facility “successfully established a pattern of stabilized, 90 percent-plus occupancy,” giving an investor an opportunity to acquire 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 national operator will step in to operate and manage the facility. The final cap rate of the facility was 6.3 percent on the 2015 budget net operating income (NOI) of $1.9 million, Evans says.
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