Grand Villa of Melbourne
964 South Harbor City Blvd., Melbourne, FL 32901
Grand Villa of Melbourne was being operated as a hotel when it was acquired in June 2010. The company continued to operate it as a hotel while it was getting the renovation process permitted.
Once renovations started, the hotel operations were discontinued. Renovations were substantially completed and opened as an assisted living community at the end of April 2011.
The Story
1
After acquiring the community in June, 2010, Senior Management Advisors oversaw the renovations of the building and began assisted living operations in April, 2011. By the end of 2011, the community had a census of 70 residents representing a 61% occupancy at the community with an average resident rate of $2,810.
2
By May of 2012, one year after starting assisted living operations, the community grew to a census of 98 residents, representing a 93% occupancy.
3
By year end, the actual net operating income for 2012 was $802K with a trailing three month annualized net operating income of $1,030K.
4
Over the next ten years of operation, Senior Management Advisors successfully filled the community, peaking at 98.17% in August of 2013. Additionally, through working with investors Senior Management Advisors successfully implemented and constructed an additional Memory Care Wing.
5
For the trailing twelve months ended May 31, 2022, the community operated at a 93% occupancy with a census of 152 residents, with an average resident rate of $4,040 with a net operating income of $2,110K
6
The community was sold in October 2022 for $29M. Based on January 2025 FS, total contributions were $7.2M and total distributions were $27.1M.
About
The Purchase
The community was originally purchased for $4.5M. The cost of the initial renovations to convert the property to an assisted living community was $3.2M. Since that time, the company has invested an additional $7.6M into the property.
Most of that investment was related to the special purpose memory care building that was built next to the main building at a cost of $5.0M. The memory care unit consists of 26 units and was opened for operations in December 2015.
The Numbers Are In
$7.2M
The total cash investment in the property is $7.2M.
$12.9M
The partners have received distributions of $12.9M over the course of the investment.
$29M
Return on Investment of $29.0M, there is a remaining liquidation value of $13.6M.
$27.1M
This resulted in a total cash return of $27.1M on a $7.2M investment.
