PALM BEACH, FL-The Carlisle, a 310-unit independent and assisted living community in Lantana, has traded for an undisclosed amount. The six-story mid-rise community has 250 independent living units and 60 assisted living units.
ARA’s Senior Housing specialists Ryan Maconachy and Chad Lavender represented Palm Beach Club in the sale of the asset. AEW Capital Management acquired the property on behalf of AEW Senior Housing Investors. Senior Lifestyle Corporation, a joint venture partner of AEW, will manage the facility.
“There was a lot of competition for this deal,” Maconachy tells GlobeSt.com. “Most of the core stabilized buyers in the market with the capability to do a deal of this size took interest in the property. AEW is looking to gain an upside through improved management and occupancy. The property was about 83% leased at closing.”
Built in 1999, The Carlisle is one of the premier seniors housing communities in Florida with an upscale amenity package, luxury interiors and ocean views from its penthouse suites. Twenty of the 60 assisted living units have been substantially renovated, and the cinema room and the card/billiard room have also been recently enhanced.
Maconachy says there are extremely high barriers to entry in the market, but senior housing is gaining momentum across the board. He points to several multimillion-dollar deals in the last 100 days alone.
“Investors are bullish on senior housing because during the downturn, when everybody else was seeing negative rent growth and big drops in occupancy, senior housing stayed stable on the revenue side,” Maconachy says. “We did see about 400 basis point of dip in occupancy, but in the big scheme of things that’s not so bad. It’s certainly not the end of the world for owners to have a dip like that.”
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