A not-for-profit health system in Alabama, the East Alabama Medical Center, recently exited the assisted living market, selling their three assisted living/memory care communities all located in Auburn. Featuring the only memory care beds (with 84) in the county, licensed as “Specialty Care Assisted Living,” these facilities were built between 1996 and 1999. Under the hospital’s ownership, expenses and staffing ran high, and census suffered party due to insufficient marketing efforts. There was still about $700,000 of EBITDA on $5.9 million of revenues, with 85% occupancy based on units, but those could both be improved under new ownership. The buyer was a partnership between private equity firm Harrison Street Real Estate Capital and Alabama-based operator Dominion Partners LLC. The two companies plan to make a significant investment in the physical plant at each property, as well as cutting expenses and rebranding. Making full use of the only memory care beds in the county should help too. Bradley Clousing and Jeff Binder of Senior Living Investment Brokerage handled the transaction.
Diamond in the rough
