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 recent transaction to a non-traded REIT. The property features 22 independent living units, 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 community’s 105 units were built with the future of Seniors Housing in mind, featuring private bathrooms, modern finishes, and expansive square footage. The facility 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 national operator will step in to operate and manage the facility. The final cap rate of the facility was 6.3% on the 2015 budget NOI of $1.9M.