Award-winning independent and assisted senior living community boasts 97% average occupancy
TUSCON, Ariz. – CBRE announced the sale of The Country Club of La Cholla, a 217-unit independent and assisted living community in Tucson, Ariz. to a Chicago-based senior living private equity fund for $53 million ($244,470 per unit).
Matthew Whitlock of CBRE National Senior Housing, represented the seller, an Irvine, CA-based affiliate of MBK Senior Living. CBRE’s Aron Will arranged for the acquisition financing for the buyer, CPF Living Communities.
The Country Club at La Cholla is a resort-style, full-service senior living community that sits on 10.6 acres at 8700 N. La Cholla Boulevard in Tucson. The award-winning community provides multiple levels of care, restaurant-style dining and a robust resident enrichment program. The amenities include a barber shop, library, piano lounge and a newly-renovated clubhouse.
The 236,466-square-foot property is located near the Omni Tucson National Resort and Golf Course, Foothills Mall, Northwest Medical Center and a variety of restaurants and entertainment venues. The Country Club at La Cholla benefits from its proximity to the AZ-77 Freeway that connects to downtown Tucson. The property averaged 97% occupancy in 2018, and will be managed by Grace Management, a wholly-owned subsidiary and management arm of CPF Living Communities.
“The Country Club at La Cholla is a premier, full-service senior living community in the Tucson area with an appropriate mix of luxury independent living and assisted living units,” said CBRE’s Whitlock. “The transaction represented the sale of a first-class community with high stabilized occupancy by a sophisticated seller, and an acquisition by an extremely knowledgeable buyer capable of recognizing the inherent current value of the community as well as an opportunity to acquire one of Tucson’s premier senior housing communities. The community will no doubt be seamlessly integrated into the buyer’s operational portfolio.”
Investor interest in senior housing remains very strong, with nearly two-thirds of survey respondents expecting to increase the size of their portfolios over the next 12 months, according to a 2018 CBRE research report. Investors appear most interested in the lifestyle-focused segments of senior housing with independent living being identified as the best investment opportunity, followed by assisted living. The active-adult segment also is attracting considerable interest, according to the report.
CBRE National Senior Housing is a fully integrated platform, specializing in investment sales, debt and structured finance, investment banking, and valuation. The team has successfully transacted more than $17 billion in property sales dating back to 1998.