Aliso Viejo, Calif. and New York, NY — Nelson Brother Professional Real Estate (NBPRE) and Premier Senior Living, LLC, (New York) have purchased a two-property assisted living portfolio in Florida, Summerville of Venice and Summervile of New Port Richey for $8.5 million in an announcement by Brian Nelson, Principal and co-founder of NBPRE. Both properties totaling 82,112 square feet with 190 licensed beds and 148 units will be leased out to Premier Senior Living who will pay investors an 8% cash-on-cash return net of all expenses including taxes, insurance, maintenance and debt service.
The property, owned by an LLC, will offer investors an opportunity to purchase shares of the investment with a minimum of $33,000 according to Nelson who is also optimistic about partnering again with Premier for this portfolio. “We have had tremendous success with Premier hand-picking properties that provide stable occupancy and cash flow but that have been underachieving economically. These two properties fit their perfect investment model as their goal is to optimize income through streamlined operations and effective marketing strategies.” said Nelson.
Summerville at New Port Richey is a 70-unit facility located on a 1.928-acre site offering assisted living studios, semi-private assisted living units, memory care studio units and semi-private units. The second property, Summerville at Venice is situated on a 1.418-acre site with 78 units including studios, one-bedrooms and semi-private units. The seller of the portfolio was Emeritus, a publicly traded company out of Seattle, Washington that had paid over $17 million for the two properties in November of 2007.
“We believe that we’re buying these properties at the right time considering what Emeritus paid four years ago,” said Nelson. “While we don’t expected values to appreciate anywhere near the 2007 level, we see a lot of potential in assisted living facilities in Western Florida.” He also added that this is an ideal time for investors with Premier paying a fixed rent and covering all the expenses while trying to grow the income. “We expect that investors will net 11.96% just from the cash flow of operations and that ultimately returns can be as high as 20-25% annually after all is said and done.”
Wayne Kaplan and Robert P. Borsody, owners of Premier Senior Living in the aggregate have between them over 37 years owning and operating assisted living facilities in New York state and throughout the country. The company offers more than 25 years of experience, operational sales, marketing and sophisticated management services based on knowledge of the financial and market pressures impacting each facility. Premier Senior Living’s mission and philosophy is to champion the quality of life for every senior, providing a comfortable and dignified lifestyle that enhances each resident’s well being.
Nelson Bros. launched their real estate company in 2007 concentrating on the acquisition, financing and ownership of office, retail and multi-family properties for TIC investments throughout the West and Southwestern United States. The firm, owned by brothers Patrick and Brian Nelson is focused on the acquisition of real estate investments in the niche areas of student housing and assisted living investments.