Krisco Senior buys a San Antonio development for less than half price at auction
Assisted Living, San Antonio Friday, August 6th, 2010
Kisco Senior Living recently bought a seniors housing project in San Antoio at auction for less than half of the original cost, which was $37 million.
Villa de San Antonio, the development purchased by Kisco, opened four years ago as a continuing care retirement community. It has 114 independent living units, 24 cottages and 55 assisted living units.
The problem began with the property’s construction delay and it was followed by the low occupancy rate, of just 60%. This number was registered in February 2009, when the property filed for bankruptcy with $36 million in debt.
The property had two bidder at the auction: the Covenant Group, based in Fort Worth, Texas, which made an offer of $14,6 million. The other bidder was Kisco, who had previously purchased a controlling interest in the outstanding bonds when the property went into bankruptcy. He ultimately placed an offer of $17 million so he won the property and the transaction closed past month. "Since we owned most of the bonds, we were thr likely buyer,"said Andy Kohlberg, president and CEO of Kisco based in Carlsbad, Calif. The company owns and operates 20 seniors housing projects. "There are a lot of struggling properties out there for sale, but the key is finding the ones are fixable" Kohlberg added.
Posted by Istvan Fekete
on Aug 6 2010. Filed under Assisted Living, San Antonio.
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[...] The problem began with the property’s construction delay and it was followed by the low occupancy rate, of just 60%. This number was registered in February 2009, when the property filed for bankruptcy with $36 million in debt. Read more.. [...]