Madison Realty Closes Senior Care DST
Madison Realty Companies, a private real estate firm that sponsors alternative investment offerings, purchased American Meadows and American Vistas, two senior care facilities in the Phoenix, Arizona metro area for $14.8 million, on behalf of Delaware statutory trust investors. The program, Madison Realty Senior Care II-AZ DST, closed at the end of July.
“Our niche is buying properties smaller than the REITs have historically acquired,” said Madison Realty’s principal and co-manager, Gary Langendoen. “We aim to provide higher than REIT returns while offering potential upside through operating efficiency, expansion, conversion, or a combination of the three.”
Located in Mesa, Arizona, American Meadows is a two-building, 26-unit facility totaling 13,300 feet situated on nearly an acre of land. The first building was constructed in 2011 and is dedicated to memory care, while the second was constructed in 2012 and is dedicated to traditional assisted living services.
Built in 2010 and 2013, American Vistas is a two-building, 43-unit assisted living facility located in Apache Junction, Arizona. The 21,000-square-foot facility is also dedicated to memory care and traditional assisted living services. The company noted that the Mesa and Apache Junction properties are in excellent condition with room for growth in ancillary services and staff training.
Co-manager Matthew Arnold, who works alongside Langendoen spearheading management and operational improvements at the newly acquired properties, commented, “Phoenix is a large retirement area and our target constituents are retirees who are now in their 80s and need assistance with their everyday activities.”
The properties, which together serve as the company’s second DST offering this year, have a loan-to-value ratio of 41.9 percent with 25-year amortization and a fixed rate of 4.75 percent for a 7-year, no interest-only term.
Madison Realty Companies is a full service real estate investment management company that currently owns and manages 24 senior living properties, six of which have been acquired in the last eight months.
