The Senior Housing Services Group of CB Richard Ellis Inc. handled the transaction. "Investor demand for Ashford Court was quite strong, due to solid demographics and the quality of the location and construction," says Bruce Gibson, vice president of CBRE's senior housing division. "The Jacksonville Beach market continues to see strong investment sale activity."
Gibson represented the seller and also found the buyer for the 3.5-acre property. Although occupancy at closing was 95%, the property was between 65% to 75% occupied "for much of the last two years."
He tells GlobeSt.com the development cost of Ashford Court was about $12 million, or $130,434 per unit. That indicates Royal Senior Care picked up a bargain in its first senior housing purchase by buying the asset at far below replacement cost, area brokers tell GlobeSt.com.
Gibson tells GlobeSt.com the deal was done at this time because Germany-based Dresdner Bank, Fru-Con's owner, was liquidating many of its US-based assets.
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