This acquisition represents SRG's first foray into Florida. It owns and operates four such facilities in Arizona, four in California and three in Oregon. Without disclosing the price of the assets, an SRG spokeswoman tells GlobeSt.com "both properties were on the market for residential condo conversion. They represented a great opportunity for us. The demographics and market are there for us to achieve our goals." Calls to HealthTrust regarding its disposition of the properties were not returned by deadline.

SRG will maintain them as senior rental facilities and sees significant upside potential. The Naples facility, which opened in 1998, consists of three-story buildings on a 17-acre site. According to the spokeswoman, 50 of the 300 units are vacant. "Unit rental prices for independent living range from $2,475 to $3,545, depending on size," she says. "The cost includes meals, utilities, housekeeping, grounds keeping and other services, including transportation." With a move to assisted living quarters comes an increase of between $300 and $600 a month.

The Palm Beach facility, which was built in 1999 and consists of three buildings on a seven-acre site, is now just 35% occupied. "We have quite a way to go with this property," she says. "Residents fled on the fear of conversion to for-sale condos, and now former residents are coming back. That same fear has not yet spread so rapidly at the Naples property." Independent living rental rates at the Palm Beach location span from $3,250 to $5,750 a month for the largest units. Assisted living quarters are smaller, and rates range from $3,230 to $4,195 a month.