"This community was the only property that we leased from Healthcare REIT and they had depreciated the asset down to the value where we could strike a deal," Ross Roadman, senior vice president of strategic planning for the Nashville-based buyer, tells GlobeSt.com about 303 Lantern Bend Dr. "We bought the operating rights in 1999 and now we've bought the real estate." He adds American Retirement had seven more years on its purchase option.
The 80%-leased Hampton at Cypress Station has 77 resident assisted living units and 19 resident Alzheimer's units, all studio designs with 300 sf to 400 sf. Assisted living units lease for $3,000 per month; Alzheimer's units run $4,000 per month.
"This community is between independent living and a nursing home," Roadman says. "It's an upscale community because it's private pay--it comes right out of the residents' pockets."
American Retirement Corp., which went public last month, owns or operates seven senior living communities in the Houston area. "It's definitely a market we like," Roadman notes. "It's a great market for seniors with very attractive demographics and the right socioeconomic mix." Nationwide, the company owns 16 properties, leases 45 communities and manages six facilities.
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