Senior Living Investment Brokerage’s Brad Clousing successfully sold a 36-unit assisted living community in Port St. Lucie, Florida, that has plenty of room for expansion. Seizing that opportunity was a South Florida-based owner/operator, which acquired the community for $3.18 million, or $88,300 per unit, with an 8.0% cap rate. The seller was a developer who was looking to exit operations after relocating to Minnesota.
That said, they left the 17-year old community in fine shape, with 97% occupancy and a 23.5% operating margin on about $1.075 million of revenues, which could still be improved. There is the opportunity to expand with an additional 24 units (36 beds) of memory care, as well as a new dining room and more common space. Attracting a higher acuity resident could certainly help with the operating margin, if the job is done right.
