A private REIT based in North Dakota purchased a private pay assisted living community in Rapid City, South Dakota with hopes of improving occupancy and operations to increase value. Built in 2004, the 87-unit community was 85% occupied with a 20% EBITDAR margin in the trailing 12 months.
The seller was an independent owner/operator, so the buyer should be able to introduce some economies of scale and professional management to the community. Evans Senior Investments handled the sale, closing the purchase price of $7.1 million, or $81,600 per unit.
