Wrapping up his work before the holidays, Brad Clousing of Senior Living Investment Brokerage sold a 72-unit memory care community in Naples, Florida. He found a Florida-based private equity firm to buy the community for $6 million, or $83,300 per unit. That buyer and the new operator, Concordis Senior Living, plan on making a few changes to ramp up operations and take advantage of the highly desirable submarket.

Originally built in 1995 and designed for both assisted living and memory care, this community had been well-maintained but operated as strictly memory care under previous ownership. Occupancy was low (just 44%), and it was losing over $40,000 a year on nearly $2.3 million of revenues. Given the building boom in southwest Florida, and in the Naples MSA, we suspect increased competition and staffing issues may have contributed to the lagging operations. But the PE firm and Concordis plan on converting the asset back to an AL/MC community to boost census. And once it’s stabilized, maybe a rent increase?