When it rains, it pours for Senior Living Investment Brokerage, with the firm closing three transactions at the start of August. In the first one, while one assisted living operator exited the seniors housing industry, another entered in SLIB’s latest California sale. Jason Punzel, Brad Goodsell and Vince Viverito successfully sold a 30-unit assisted living community in the town of Chico (Sacramento MSA) for $4.15 million, or $138,300 per unit, with a 10.7% cap rate. Fully occupied, with a 29% operating margin, this 22-year old community was owned by a local operator that wished to exit the industry. Its new owner is a new entrant to seniors housing that is looking to expand throughout the West Coast.

Senior Living Investment Brokerage didn’t stop there. Patrick Burke and Bradley Clousing helped a private individual with other senior care properties throughout the Southeast sell their two assisted living communities in Hendersonville, North Carolina to an assisted living operator already with a footprint in the state. The larger community (with 42 units and 50 licensed beds) was built in 1988, while the smaller 22-unit/43-bed community was built over 50 years ago. They both reported strong occupancy just below 100%, with about 55% of the census being private pay and the remaining 45% coming from Medicaid. Combined, the properties operated at just a 12% margin on approximately $2.3 million of revenues. Some 25 years ago (when we last recorded the sale of these properties), they sold for a combined $2.6 million, with an average cap rate around 18%. Today, they traded for $3.7 million, or about $57,800 per unit, with a 7.6% cap rate.

Finally, on the skilled nursing side, a local partnership in northern Florida is reducing its exposure to the skilled nursing market and hired Mr. Clousing and Ryan Saul to divest its 104-bed skilled nursing facility in Jacksonville. The partnership is exiting a well-maintained property, which sold for $8.5 million, or an above-average $81,730 per bed, despite being built in 1965. It has a four-star rating from CMS, 94% occupancy and a 12.5% operating margin. The buyer was a partnership of investors with experience in the skilled nursing market.