$14M Facility To Auction for $4M

[IMGCAP(1)]NEW HAVEN-The Adel R. Coccomo Residential Center is coming to auction at roughly a fifth of its original construction cost. The 72-unit assisted living facility was completed in 2008 at a cost of $14.5 million, but the auctioneer, New York City-based Tranzon Integrated Property Group, is authorized to sell at a reserve price of $3.5 million. Sitting on 12 acres of land, the property–1556 Saybrook Rd.–is roughly 90,000 square feet.

“After incurring significant construction costs, the owner has unfortunately been unable to devote the appropriate resources towards attracting tenants in the way that a new and better capitalized owner would be able to,” explains Oren Klein, VP and auctioneer at Tranzon, in a statement.

[IMGCAP(2)]Joshua Olshin, president of Tranzon, in a statement, sees this as an opportunity a “premium asset at a distressed price.” Klein also pointed to the current market surrounding this market, saying, “Seniors make up 13.4% of the Connecticut population which is well above the national average. More significantly, competing facilities in the area offer residents less competitive packages and are still operating at close to 100% occupancy.”

The auction will be head on Wednesday, August 5th, 2009 at three in the afternoon. The owner was not disclosed, however the project was owned and developed by Carmen Coccomo.