November 17, 2011
By Nicholas Ziegler, News Editor
A privately owned Chicago firm has just purchased Oak Point, a seniors manufactured-home community in Middleborough, Mass., for $55 million. The seller, a partnership between a Connecticut-based real estate investment fund and a real estate developer from the Boston area, were represented by Marcus & Millichap in the transaction.
Oak Point, which was built in 1998, has 870 homes for seniors aged 55 and older. Terms of the sale also include entitled, developed land that could hold an additional 280 units. The community’s manufactured homes, which are resident-owned, range from 1,500 to 2,100 square feet and sit on quarter-acre lots.
“The community has experienced rapid lease-up activity in the years since its inception,” Dan Mulkey, a vice president with Marcus & Millichap, said, “which is a testament to the desirability of the community, the demand for this product type in the area and the skill of the onsite operating team.”
As Commercial Property Executive previously reported, the outlook for seniors housing has been and continues to be very good. For the last 10 quarters, occupancy rates in the sector has been rising, currently sitting at 88.1 percent. With such strong showings, investors have been flocking to snap up facilities, and a full 90 percent of all transactions have been through REITs.
“The new owners see the value in the existing income from the stabilized portion of the community,” Mulkey said, “and also place significant value on the ongoing home sales operations and future development potential.”
The property is located at 200 Oak Point Dr. in the Route 24 corridor. A commuter-rail line provides direct access to Boston.