Georgia Seniors Housing Property Sells for $33M
- Jan 22, 2014
Peachtree City, Ga—Towne Club at Peachtree City, a 153-unit seniors rental housing property in Peachtree City, has traded hands for $33 million, or about $215,600 per unit. The owner, Peachtree City Towne Club L.L.C., sold the complex to a private investor.
Towne Club at Peachtree City’s current configuration is 112 independent living apartments and 41 assisted living units. The independent living apartments average 918 square feet, while the assisted living units range from 350 to 1,075 square feet. Each unit has a full kitchen and a washer and dryer.
The property features country club-style dining and a cocktail lounge. Other common amenities include a saltwater pool, fireside cabana, massage room, fitness center, media center and game room. At the time of the sale, the facility was 92 percent occupied.
Established in 1959, Peachtree City has about 37,000 residents, roughly 8 percent of whom are 65 and older. The town has an unusual amenity that Towne Club at Peachtree City’s residents can use: more than 90 miles of golf cart paths. Residents can use golf carts, as an alternative to autos, to travel not only to golf courses, but also tennis courts, lakes, schools, a 2,500-seat amphitheater and many other destinations in the town.
Mike Pardoll, a senior vice president investments in Marcus & Millichap’s Charlotte office, assisted by Michael J. Fasano, vice president in the firm’s Atlanta office, represented the seller in the deal. The property is a congregate care facility that originally was an independent living community, according to Pardoll. As of last year, some of the independent living apartments were converted to assisted living units. “There’s now a waiting list for those units,” he says.
The demand for seniors housing nationwide is quite strong these days. According to the National Investment Center for the Seniors Housing & Care Industry, the average occupancy rate for seniors housing properties in the fourth quarter of 2013 was 89.7 percent, an increase of 0.4 percentage points from the prior quarter and a 0.7 percentage point increase from a year earlier. As of Q4 2013, occupancy was 2.8 percentage points above its cyclical low of 86.9 percent during the first quarter of 2010.