The Heritage Oaks complex at 1100 German School Road. (Photo by Burl Rolett)
A Richmond retirement community fetched an eight-figure price in its recent sale to a New York investment firm.
Manhattan-based Fortress Investment Group on Nov. 12 bought the Heritage Oaks complex at 1100 German School Road on Richmond’s Southside for about $12 million, according to city records.
Oklahoma City-based Heritage Oaks Retirement Community LLC sold the 98,000-square-foot, 121-unit apartment complex, which caters to senior citizens, nine years after buying it for $9.5 million.
The deal illustrates what ARA Seniors Housing broker Cody Tremper called a busy market for retirement properties.
“It’s [driven by] demographics and aging trends,” said Tremper, who handled the transaction for the seller. “For investors, the [capitalization] rates are higher than a multifamily project, so it offers higher returns for those guys.”
Heritage Oaks is about 65 percent occupied, Tremper said. The property was built in 1987.
Tremper said Heritage Oaks was a good buy because its construction offers Fortress the flexibility to potentially repurpose the property.
“This building is steel frame construction with concrete subfloors,” Tremper said. “It was attractive from a sense that you could potentially convert it to assisted living.”
Tremper, whose brokerage specializes in senior housing, expects the market for this type of property to remain strong in the near future.
“We have way more buyers than sellers,” he said. “Interest rates are still low, people have a lot of cash, and there’s not a lot of product that was built in the last two years.”
The Heritage Oaks complex at 1100 German School Road. (Photo by Burl Rolett)
A Richmond retirement community fetched an eight-figure price in its recent sale to a New York investment firm.
Manhattan-based Fortress Investment Group on Nov. 12 bought the Heritage Oaks complex at 1100 German School Road on Richmond’s Southside for about $12 million, according to city records.
Oklahoma City-based Heritage Oaks Retirement Community LLC sold the 98,000-square-foot, 121-unit apartment complex, which caters to senior citizens, nine years after buying it for $9.5 million.
The deal illustrates what ARA Seniors Housing broker Cody Tremper called a busy market for retirement properties.
“It’s [driven by] demographics and aging trends,” said Tremper, who handled the transaction for the seller. “For investors, the [capitalization] rates are higher than a multifamily project, so it offers higher returns for those guys.”
Heritage Oaks is about 65 percent occupied, Tremper said. The property was built in 1987.
Tremper said Heritage Oaks was a good buy because its construction offers Fortress the flexibility to potentially repurpose the property.
“This building is steel frame construction with concrete subfloors,” Tremper said. “It was attractive from a sense that you could potentially convert it to assisted living.”
Tremper, whose brokerage specializes in senior housing, expects the market for this type of property to remain strong in the near future.
“We have way more buyers than sellers,” he said. “Interest rates are still low, people have a lot of cash, and there’s not a lot of product that was built in the last two years.”