Father/son tag team steps down

A father and son team is selling their only senior care asset, a 48-unit assisted living/memory care community in North Carolina, for $3.65 million, or $76,042 per unit. Built in 1984, the community features all double-occupancy rooms, with 64 adult care home beds and 32 special care beds. There is certainly room for improvement in operations. Occupancy was just 74% based on beds, with a 50% private pay census. Plus, due to several changes to Medicaid reimbursement (which actually prompted the sale), cash flow suffered, with the community pulling in just $106,000 on approximately $2 million of revenues. The buyer, a national operator with a strong presence in North Carolina, plans to invest up to $500,000 in upgrading the building and using their local marketing expertise to increase occupancy and cash flow. Patrick Burke of Senior Living Investment Brokerage handled the transaction.


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