Senior Living Development in Germany: From Land Acquisition to Institutional Sale

Quick Answer

Developing a successful senior living project in Germany requires much more than acquiring land and constructing a building. The greatest value is created by combining the right location, a sustainable operating concept, long-term lease security, structured financing and a clear exit strategy for institutional investors.

This case study demonstrates how Dominart Real Estate managed the complete development process—from identifying the land to preparing the completed investment property for a confidential off-market sale.

Why This Project Matters

Institutional investors rarely purchase unfinished ideas.

They invest in predictable income, reliable operators and professionally structured assets.

For this reason, development begins long before construction starts.

It begins with identifying the right market opportunity.

Project Overview

Project Type

• Senior Living Development

Location

• Brandenburg, Germany

Development Volume

• Approximately €6 million

Investment Strategy

• Develop – Lease – Institutional Exit

Transaction

• Confidential Off-Market Sale

The Challenge

The objective was not simply to develop another building.

The goal was to create an investment product that would meet the acquisition criteria of professional investment funds.

This required combining development expertise with investment strategy, financing, operator selection and long-term asset positioning.

Our Development Approach

Dominart Real Estate managed the project throughout its entire development cycle.

The scope included:

• Identification of a suitable development site
• Market and feasibility analysis
• Development of the senior living concept
• Coordination with architects and technical consultants
• Selection of an experienced operating company
• Negotiation of a 20-year lease agreement
• Structuring financing with approximately 70% bank leverage
• Preparation of the completed asset for institutional investors

Each phase was designed to increase the long-term investment value of the property.

Financing Strategy

One of the critical milestones was securing approximately 70% bank financing.

A balanced financing structure improved capital efficiency while maintaining an attractive risk profile for both lenders and investors.

Operator Selection

Choosing the right operator was one of the most important decisions.

A professional operating company signed a:

• 20-year lease agreement
• Three extension options of five years each

This long-term lease significantly increased the attractiveness of the completed project for institutional buyers seeking stable income.

International Investor Network

Over more than twenty years in the German commercial real estate market, Sergey Vakhnenko has established long-term relationships with investors, entrepreneurs and family offices from:

• Eastern Europe
• Israel
• The Middle East
• China

Although this project was ultimately acquired by a German institutional investor, the international network built over two decades played an important role throughout the development process.

Successful Exit

Approximately two years after completion, the fully leased property was sold in a confidential off-market transaction to a major investment fund based in Bavaria.

Due to confidentiality agreements, the names of the parties and the exact property are not disclosed.

The completed investment generated an acquisition yield of approximately 6%, matching the requirements of institutional investors focused on stable, long-term cash flow.

Key Takeaways

This project demonstrates that successful commercial development is about much more than construction.

It requires:

• Strategic site selection
• Market-driven concepts
• Reliable operators
• Long-term lease structures
• Professional financing
• Institutional exit planning

These elements transform a development into an investment asset.

About Sergey Vakhnenko

Sergey Vakhnenko has more than 20 years of experience in German commercial real estate. His work includes commercial development, hotel transactions, operator selection, investment structuring, off-market sales and advisory services for international investors. His experience spans the complete investment lifecycle from concept development to institutional exit.

Frequently Asked Questions

What is a full-cycle real estate development?

A project that includes land acquisition, concept creation, financing, construction coordination, operator selection and investment sale.

Why are long-term lease agreements important?

Long leases reduce investment risk and increase attractiveness for institutional investors.

Why are many institutional transactions confidential?

Large commercial real estate transactions are frequently completed under confidentiality agreements to protect the interests of buyers, sellers and tenants.

Does Dominart Real Estate only broker transactions?

No. The company also advises on development strategy, operator selection, repositioning, financing concepts and investment structuring.