In 2012, RSF Fund V and Smith/Packett acquired a 133-unit Independent Living facility located on the Atlantic coast of Hampton, VA for a total of $12.5 million (23% of the previous owner’s cost) as REO from Wells Fargo. The Chamberlin was built in 1928 as a luxury hotel and, in 2008, was converted into an IL facility. The previous owner spent a significant amount of capital on the conversion and registered the site as an historical landmark.
At acquisition, the facility was 58% occupied and had negative cash flow. RSF and Smith/Packett’s plan was to invest additional capital to complete the renovation of the building. The project was master-leased to Harmony Senior Living, Smith Packett’s affiliated senior living operating company. Harmony then repositioned the asset in the local market area, focusing on the unique location and historical importance to the large retired military population in the area. In late 2015, Harmony executed its purchase option and bought The Chamberlin.
3899 Maple Avenue, Suite 250
Dallas, Texas 75219