What would you pay for an empty assisted living/memory care community? What about a nearly-finished 48-unit memory care community in Williamsburg, Virginia whose previous owner filed for bankruptcy? Well, Jacksonville, Florida-based investment bank/brokerage firm WM Dougherty & Co. (WMD) purchased that unfinished site for $7.5 million, and has plans to invest another $2 million to finish the community. All in, the WMD will end up paying nearly $200,000 per unit for a brand-new, but empty, memory care community. That may seem high, given that according to the 2016 Senior Care Acquisition Report, assisted living/memory care communities sold on average for $207,400 per unit, compared with $138,000 per unit for AL-only properties. But, this property would be brand new, upon completion in February 2017, and is located in an affluent area. Plus, there were two sales in Virginia just last year involving relatively new AL/MC communities selling for around $345,000 per unit. So, if all goes well, WMD is bringing on Solvere Senior Living to manage the community, which is the fourth such agreement between the two companies.
Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
