Winchester, Virginia was the most fought-over town during the American Civil War, changing hands between the North and South as many as 72 times. Now, in a bloodless affair, a 75-unit assisted living community in town has a new owner (New York City-based Care Investment Trust), to the tune of $9.38 million, or $125,067 per unit, with a 7.4% cap rate. The community has undergone expansions since opening in 1990, including a 35-unit addition in 2008, and today includes 73 AL units and two independent living cottages. Both occupancy and the operating margin can be improved, with both standing at 83% and 22%, respectively. Also, monthly rates, ranging from $2,500 to $2,900 for semi-privates, and $3,050 to $3,600 for privates, can be increased. That task is being left by the previous owner, which is exiting the market with this sale, to a partnership between Care Investment Trust and Inspirit Senior Living. Toby Siefert and Patrick Burke of Senior Living Investment Brokerage handled the transaction, while Aron Will of CBRE secured a $7.35 million, five-year floating rate loan that includes 18 months of interest only from a regional bank.
Mr. Siefert also sold the license and CON to a 61-bed skilled nursing facility in Bloomfield, New Jersey. The deal didn’t include the real estate, but the property was shut down and sold to the nearby university in Essex County. The license could be moved within the county or a contiguous county. The all-Medicare certified beds were sold by a regional operator exiting the skilled nursing business. A New Jersey-based developer paid $1.5 million, or $24,590 per bed, for the license and CON, with plans to develop a high-end Medicare skilled nursing facility.
