Sun Prairie, WI March 7, 2024 – SHA Capital Partners is pleased to announce the sale of TallGrass of Sun Prairie, a campus with 52 assisted living units and 62 cottage apartments. Two different local buyers acquired the individual components in separate transactions in 2023. The tight Madison-area housing market prompted SHA Capital Partners to find a buyer interested in converting the senior housing units to apartment units.
“A combination of factors motivated us to think creatively about this asset,” said David Watkins, founder of SHA Capital Partners. “Selling to an apartment specialist made perfect sense, given scarcity of apartments in Madison and the challenging post-pandemic labor situation. We sold for about twice what a senior housing investor had offered us.”
Through the successful transactions, SHA Capital Partners paid off the bank loan and generated a 2.5x multiple to the TallGrass equity investors.
SHA Capital Partners acquired the campus in October 2016 when it was 50% occupied. During the hold period, SHA Capital Partners directed a $2 million renovation project that included updated bathrooms and kitchenettes in each unit, plus upgrades to common areas.
ABOUT SHA CAPITAL PARTNERS
SHA Capital Partners, founded in 2013, specializes exclusively on senior housing investment and development. The firm’s strategy centers on deep industry knowledge, niche markets, and active asset management. David Watkins and Doug Cooper, the firm’s principals, are based in Chicago, IL and Washington, DC, respectively. Collectively, the principals have over 25 years of senior housing investment/development experience. More information is available at www.shacp.com.
