Challenge: Located in Largo in Pinellas County, FL (in the Tampa Bay metropolitan statistical area), Heron House is an approximately 69,569-square-foot, three-acre property built in 2006 with a total of 128 units and 145 beds. The occupancy was 80%.
Heron House was owned by a church as a not-for-profit assisted living residence. Many of the residents were either members of the church or close relatives of the congregation. The church board wanted to ensure that the buyer would continue with the same care and consideration as the church had been providing for many years.
Strategy: We brought the asset to market at an aggressive 6.74% cap rate. An appraisal was completed just a month before the assignment was accepted, and we felt we could produce a sales price significantly higher than the appraised value. The asset was brought to the market at 20% over the appraised value. We initiated our marketing approach by presenting this opportunity to other faith-group entities.
Result: Our approach to the target market resulted in another faith-based organization purchasing the residence, satisfying the client. The price was almost 15% higher than the original appraisal. Furthermore, the buyer’s mindset on care for elders was exactly in line with the seller’s requirements.