Roers Companies sold its Twin Cities area Havenwood Senior Living properties to Lone Star Funds today for $160 million, which appears to be the highest price to-date for a senior living portfolio transaction in the metro area.
The sale includes five properties in Minnetonka, Maple Grove, Burnsville, Richfield and Buffalo, totaling more than 550 independent and assisted living apartments, plus memory care and care suites.
Roers Cos. developed each of the sites, with the first Havenwood location opening in Richfield in 2018. The newest and largest addition to the portfolio is Havenwood of Maple Grove, which opened in April 2021 with 150 units. The properties offer an array of amenities that include a movie theater room, a putting green, a golf simulator lounge, hair and nail salons, restaurants and cafes, crafting and tinkering spaces, among others.
“Roers Companies is incredibly proud to have built Class-A senior living communities throughout the Twin Cities where older adults can receive a continuum of care while enjoying home-quality finishes and a variety of desirable amenities,” says Brian Roers, co-founder and owner of Roers Cos.
“These are truly best-in-class facilities, and we are incredibly grateful to our operators — Walker Methodist and Jaybird — who worked tirelessly to make each Havenwood community a place that residents are proud to call home,” Roers Cos. adds.
As part of the sale, Grace Management takes over operations for the five communities. A sixth Havenwood community in Onalaska, Wisc. will remain under Roers Cos. ownership and Walker Methodist management.
Roers notes that a key driver behind the sale is to focus in on our core competencies of building and operating beautiful market rate, active 55+, and affordable housing communities nationwide in 2022 and beyond. He says the transaction will help the firm invest in several new projects.
In addition to the firm’s own funds, Roers Cos. relies on private investors for most of its new developments. The Havenwood portfolio sale delivers an average return on equity (ROE) of 75% and internal rate of return (IRR) of 20%.
“We wouldn’t have been open to a sale if it didn’t yield such solid returns for the individuals who invested in our Twin Cities Havenwood properties,” said Kent Roers, who co-founded and owns Roers Cos. with his brother Brian Roers. “Our investors make our projects possible, and we anticipate many of them will look to reinvest their proceeds in upcoming developments.”