We’ve been saying this since 2014, but it seems to be a good time to sell a seniors housing property. Prices are still near record highs in the assisted living market, at $221,250 per unit in 2017, according to the 23rd Edition of The Senior Care Acquisition Report. The M&A market, even during the normally quiet summer months, is as frothy as ever, with 52 deals announced in the third quarter, so far.
But even these reasons aside, a local partnership in Wisconsin is truly exiting the market on top, with its 60-unit assisted living community fully occupied (with a 100% private pay census) and operating at a 31% margin. Built in stages in 2007, 2009 and 2014 in the affluent Green Bay suburb of De Pere, the community features all private units, each with a bathroom. There are also a couple of vacant parcels that offer a development opportunity for the new owner.
A family-owned business in a 1031 exchange paid just over $11 million, or $183,400 per unit, with a 9.4% cap rate, for the property. Ray Giannini of Marcus & Millichap handled the transaction.
