Agapé Senior Living portfolio sells for $154 million

In one of the largest US seniors housing sales so far in 2015 (sixth-largest, to be exact), a private equity firm bought the independently operated South Carolina Agapé Senior Living portfolio, representing 10 communities with 856 units of seniors housing and three facilities of 294 skilled nursing beds. Agapé grew the portfolio organically through internal growth and acquisitions, with all the properties relatively young and large in size. In fact, the oldest building was built in 1990 (a SNF), and the smallest was a 58-unit AL/MC community. The final purchase price was $153.9 million, or $156,400 per unit for the AL/MC units and $68,000 per bed for the skilled nursing, with a 9.9% cap rate for the seniors housing and a 14.2% cap rate for the SNFs. The new owners will look to improve census, which currently averages 77.5% for the AL/MC and 81.6% for the SNFs, both based on beds. But cash flow was strong at the seniors housing communities, operating with a 30% margin on $44.7 million of revenues, compared to just a 9% margin on $31.0 million of revenues for the SNFs. Evans Senior Investments handled the transaction.