TUCSON, Ariz. – Wilmot Assisted Living, a 70-bed assisted living community, at 602-662 South Wilmot Road in Tucson sold for $4.85 million ($69,286 per bed).
Alex Snyder and Hamid Panahi, Seniors Housing investment specialists represented the buyer in the transaction. Mark Biery, JD, CCIM, Senior Housing Specialist with Berkshire Hathaway in Tucson represented the sellers.
“It’s been a very challenging property,” said Biery. “I started working on it in 2015, after construction was completed. We’ve had it in escrow several times, mostly with out-of-state investors, who wanted a passive return on their money based on a Cap Rate, but they knew very little about taking care of the elderly. Financing was always the biggest challenge. Because Wilmot is seven different buildings, the layout is different from what traditional lenders are used to, and each building was rented to small, local senior housing operators, with very short-term leases. But, Innovative Senior Living is based in Tucson and will operate this facility themselves, so I think Wilmot will work well for them.”
“The developer has now successfully exited 150 beds of Assisted Living in the past three months in order to redeploy capital to another Assisted Living community on the east side of town, in order to capitalize on the low supply of new Seniors Housing in Tucson,” noted Snyder. The buyer is a Tucson-based assisted living developer/owner/operator. “Innovative Senior Living is the perfect fit for Wilmot Assisted Living and will continue their strong track record of outstanding care and services throughout Southern Arizona,” said Panahi.
Completed in 2015 this community is poised to benefit from the proximity to Banner-University Medical Center and St. Joseph’s Hospital. According to Marcus & Millichap’s 2021 National Seniors Housing Investment Outlook, Tucson’s low supply of new Senior Housing will drive further investment from nationwide investors in the years ahead.