When a local assisted living operator in Arkansas wanted to exit the seniors housing industry, they turned to Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage to get the job done. Their final property was a 30-unit assisted living community in the town of Clarksville in northwest Arkansas.

Built in 1996 and 2008, it converted from all-independent living to assisted living in early 2017 to become the only ALF in the county. Each unit was recently renovated, and rates were also increased. With 97% occupancy and an operating margin above 35%, we imagine the new owner won’t have to change much.

That buyer was a Mississippi-based regional owner/operator who paid $3.25 million, or $108,300 per unit, with a 10.7% cap rate.

Even though this deal saw an AL owner exit the industry, at the same time there are still plenty of new entrants wanting to get a piece of the action while prices are still high and cap rates are offering better spreads than most other real estate sectors. We are hosting a webinar on Thursday November 15 at 1PM EST called “Are Assisted Living Prices Sustainable? Premium Prices for a Premium Product,” where Mr. Clousing of Senior Living Investment Brokerage will also be a panelist. Be sure to tune in to hear what he and the rest of the panel have to say about this booming market.