December 30, 2019
Sale of Coventry of Mahtomedi Seniors Housing Community in Minnesota
ESI sold Coventry of Mahtomedi, a 48-unit Assisted Living & Memory Care community in Saint Paul, Minnesota for $9,200,000 or $192,000 per unit.
Built in 2011, Coventry of Mahtomedi offers residents all of the amenities of a first class senior housing destination such as fireplace lounges, spa room, beauty salon, and secured balconies on each floor. Located less than 20 miles from downtown Minneapolis and Saint Paul, the location provides residents a peaceful lakeside setting while having close proximity to shopping and activity excursions.
Coventry of Mahtomedi was 80%+ Private Pay and 90% occupied at the time of market exposure. When brought to market, the community was running at a 22% profitability margin which represented a 7.2% Cap Rate on Trailing Twelve Months EBITDAR.
ESI represented the seller in the transaction. Jeremy Stroiman, Chief Executive Officer of ESI, commented “Coventry of Mahtomedi presented the buyer and operator an exciting opportunity to grow their current market share in the Minneapolis-Saint Paul Metro and leverage their expertise to bring even stronger returns to the community.”
The buyer, a publicly traded REIT, will bring in a regional group to operate the facility.