A California real estate investment firm has paid $9.4 million for a Longwood assisted living facility, adding a new wrinkle to a trend that so far has focused on construction of these sites.
Madison Realty Companies of Pasadena, Calif., may be signaling the next wave of activity with its acquisition of Cornerstone at Longwood. The firm's managing director went so far as to say Central Florida is on the cusp of becoming fertile ground for firms seeking out senior living facilities at reasonable prices.
And the price paid by Madison Realty could help set the bar for other senior living centers that are under development or now operating in Central Florida.
The Longwood property was chosen for its growth potential, Gary Langendoen, managing director of Madison Realty, told GrowthSpotter.
The 112-bed domicile, which offers assisted living and memory care services, "can be improved in a number of ways, including through repainting and making the front of the property more inviting," Langendoen said. "We buy them to upgrade, expand (and) make them nicer."
Another goal, over time, is to get more private pay residents as opposed to those on government assistance, Langendoen said.
Madison Realty, which acquires and oversees properties for institutions, individuals and foreign investors, owns 15 assisted living sites across the country and is part of the robust aftermarket for these properties.
The firm's first Central Florida property, Cornerstone at Longwood, was bought from Pacor Inc., a business entity held by Paterno and Corazon Bagsiyao of Longwood, property records show. Neither could be reached for comment Tuesday.
Located at 480 E. Church Ave., the 50-year-old facility sits on 1.6 acres, occupies 32,678 square feet and last sold in 2008 for $5 million.
One thing Madison Realty keeps an eye on is rent, Langendoen said.
Some of the current projects in Central Florida are going to be a bit pricey as developers focus on the higher end, and Madison is quite comfortable with the $3,000 to $3,500 monthly rent at Cornerstone, he said.
Madison Realty is looking for more investment opportunities in the area, Langendoen added.
"We think there are good long-term investments to be made," Langendoen said. "We're in acquisition mode right now."
There are at least a half a dozen senior living facilities under development or construction in the Orlando area that are projected to range in price from $3,000 a month to $7,000 and upwards.
There are also many senior living facilities that have been built in the area in years past.