New ownership has changes in store for a 64-unit Florida assisted living community it acquired for $3.675 million, or $57,400 per unit, with a 9.25% cap rate. Built in 1989 in Lauderhill (located just west of Fort Lauderdale), the community, which was owned by a partnership between a local owner and a local operator, totals 105 beds in 64 rooms.
Historically, its occupancy has been near full (resting at 94% at the time of the sale), but that was in part driven by its below-market rents. That in turn also affected the community’s operating margin of roughly 20% on approximately $1.77 million of revenues. It didn’t help that the facility sustained about $30,000 in damage from Hurricane Irma.
There are a few things going for the community, including a spacious entry way, private bathrooms in each unit and plenty of common space throughout the building. But the new owner, a South Florida-based partnership, plans to significantly renovate the community and upgrade its physical plant. Ownership can then focus on raising rents and improving the operating margin. Brad Clousing of Senior Living Investment Brokerage handled the transaction.
