Senior Housing Developer Pays $8.33 Million for Former Hotel in Phoenix.
A partnership between Bruckal Developments and Ridgeline Properties has purchased the former Country Inn & Suites property at 20221 N. 29th Ave. for a price of $8.3 million. The buyer plans to convert the property into an assisted-living and memory-care community for seniors, according to a press release.
“This is one of the most creative and complex real estate transactions I have brokered in my career,” said Tim Dulany, vice president of Colliers International in Greater Phoenix and member of the National Senior Housing Group. “Pent up demand for additional private-pay senior housing units in this submarket motivated me to pursue that possibility as an alternate use for this asset. The endeavor involved finding a buyer/developer for the project, identifying creative and experienced operator for the facility, and find an architect/designer with senior housing expertise who was willing to take on this unique senior housing conversion.”
Dulany negotiated the sale transaction, which required more than 11 months of coordination. PV Deer Valley, LLC, a joint venture partnership between PacVentures LLC and RA Rauch & Associates sold the property to the buyer. Bruckal Developments (Myles Bruckal and Steve Bruckal) is a family owned, Arizona-based company with real estate assets in the U.S. and Canada. Ridgeline Properties is a leading senior housing development and property management company based in Oregon.
Built in 2000, the property offers four stories of space and was configured as a 126-room hotel. The 74,000-square-foot building sits on 3.33 acres of land and has 147 parking spaces, as well as an exterior pool and fenced patio area. The buyer/developer plans to reconfigure the building into a 119-room senior housing community scheduled to open in February 2018.
"This hotel is an ideal conversion target as it has large suite size rooms and plentiful common area spaces to develop all the amenities being afforded new seniors facilities today," says Steven Bruckal, president of Bruckal Developments, Phoenix.
Bruckal Developments, led by Steven Bruckal, has been active in added-value opportunities in the Phoenix market for the past 10 years focusing on apartment renovation and infill construction. The company has built and operated seniors facilities in Canada from 1999 to 2009. Bruckal will be responsible for all construction and conversion responsibilities. The general contractor for the project is Hawk General Contracting of Phoenix.
Ridgeline Properties, LLC is the acquisition and development arm of the Ridgeline Group of companies. Ridgeline Properties addresses the real estate aspects of the acquisition and development process, to transition operations to Ridgeline Management Company. RMC currently manages more than 2,000 beds in 11 different states. RMC is based in West Linn, Oregon and will be responsible for daily operations once the facility is open.