Tuesday, January 11, 2022

Minneapolis/St. Paul Business Journal

Oppidan sells senior living portfolio to Presbyterian Homes for $100 million

Presbyterian Homes & Services has bought a portfolio of three senior living communities from Oppidan Investment Co. for a total of $100 million.

The properties are located in Shorewood, White Bear Lake and St. Paul. The Roseville-based buyer is adding the three properties to its portfolio of 55 senior living communities.

PHS acquired around The Pillars of Shorewood Landing for $31.5 million. With around 110 units, the sale works out to approximately $286,000 per unit. The Pillars of Highland Park sold for $35 million, or $218,750 for each of its approximately 160 units. And The Pillars of White Bear Lake, with around 115 units, was bought for $33.5 million, or over $291,000 per unit.

Oppidan is an Excelsior-based real estate development and ownership company. Although the pandemic was a gut-check for senior housing developers, the Business Journal reported in July that Oppidan opened two of its largest senior communities during the pandemic.

Occupancy rates in senior living properties also took a hit during the pandemic, dipping to the lowest level in five years. However, occupancy rates are starting to recover, according to 2021 second quarter report from CBRE.

The three communities each had over occupancy rates over 90% when sold, said Oppidan CEO Joe Ryan.

Its senior properties, on average, see increases in annual occupancy rates, with an average of 9% year-to-date increases, according to a news release.

The sale better positions Oppidan to continue its investments in Minnesota and other states: “We’ve never been in a stronger position to grow not only the senior business, but some of the other asset classes,” he said.

Oppidan developed the Shorewood and White Bear Lake properties, while it acquired and redeveloped the Highland Park community, Ryan said.

Edina-based Ebenezer Senior Living will continue operating the communities into 2022, according to a statement from Presbyterian Homes.


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