A joint venture of The Waters Senior Living, Harrison Street Real Estate Capital and North Rock Real Estate has sold The Waters on Mayowood, a 175-unit independent living, assisted living and memory care community in Rochester, Minn. The price was $67.4 million, according to public records.
A private buyer acquired Mayowood and will retain The Waters Senior Living to manage the community. Cushman & Wakefield represented the joint venture in the sale.
Originally built in 2015, the property’s average occupancy rate has been around 96 percent since January 2018. The community features 133 one- and two-bedroom independent living units, as well as 42 assisted living and memory care studios. Amenities include a billiard room, creative arts studio, life engagement room, spiritual center, community room and library.
A bright future for senior housing
Located at 827 Mayowood Road SW, the property is some 2 miles southwest of downtown Rochester and 2 miles southeast of the Mayo Clinic Hospital. Rochester International Airport is some 8 miles south, while Highway 52 is half a mile west. Several retail, dining and entertainment options are available within a 1-mile radius.
Vice Chairman Rick Swartz, Executive Managing Director Jay Wagner, Director Sam Dylag and Analyst Jack Griffin formed the Cushman & Wakefield team that represented the seller in the transaction.
Aging Baby Boomers will continue to increase demand for senior housing, a trend that is most likely going to last for decades to come. The senior housing market has yet to fully recover from the COVID-induced slowdown. Meanwhile, senior housing operators have built up additional experience and are better equipped to respond to pandemic-related challenges.