The Avery Company kicked off their 2018 in a strong way, closing two transactions in succession for clients in Tennessee and Connecticut. Jolyon Wilde first sold two senior living buildings located across the street from each other in Murfreesboro, Tennessee. Both built in 2001, there was a 68-unit assisted living community with 90% occupancy and a 26-unit memory care community just 75% occupied. Both were 100% private pay and operated at a combined 22% margin on approximately $4.03 million of revenues. A local doctor decided to sell the communities to Virginia-based Inspirit Senior Living for $12.45 million, or $132,450 per unit, with a 7.1% cap rate.

Mr. Wilde was then joined by Larry Kozoll in selling a 120-bed skilled nursing facility in North Haven, Connecticut for $15.7 million, or about $130,800 per bed. Built from 1990 to 2004, the facility was 88% occupied (above normal for SNFs these days) with a 37% private pay census, but it operated on just an 8% margin on nearly $19 million of revenues. Taking over ownership is one of the largest operators of SNFs in New England, Athena Health Care Associates, which purchased the facility at a 9.7% cap rate.