As an owner/operator was exiting the assisted living industry, and trying to sell its 31-unit AL/memory care community in Santee, South Carolina (situated halfway between Columbia and Charleston), a Northeast-based owner/operator swooped in and purchased it, marking its entry into the state. Shades of 1865…but we digress. The previous owner was based in neighboring Georgia, but took a “hands-off” approach to managing. As a result, the building, although it wasn’t particularly “old” (it was built in 1999 with a recent renovation) and featured a 97% occupancy rate, was only operating at a 17% margin on nearly $1.2 million of revenues.
The new owner has plans to further update the community and focus on improving the operating margin. But there is certainly upside in the community’s value, as it sold for $1.9 million, or $61,290 per unit, with a 10.5% cap rate. So, a little care and attention could go a long way. Brad Clousing, Patrick Burke and Dave Balow of Senior Living Investment Brokerage handled the transaction.
