Senior Living Investment Brokerage kicked off its Q2 with two transactions announced on the first on the month. First, Brad Clousing and Jeff Binder headed to Cape Coral, Florida to sell an 80-unit assisted living community that was a geographical outlier for the previous owner. The seller was also looking to redeploy capital to its other communities and to fund future growth. Built in 1968 with a substantial renovation in 1995, the community was well-occupied at 94% at the time of marketing. However, it was also operating at a 19% margin on just under $3.2 million of revenues, so there is a value-add opportunity for the new regional owner/operator, which paid $6.275 million, or $78,400 per unit, at a 9.0% cap rate.

Ryan Saul went solo to sell a 180-bed skilled nursing facility in Galesburg, Illinois. Operating with just 141 functional beds, the 30-year old facility was 76% occupied based on functional beds, with a strong 26% private pay and 19% Medicare census. However, it was losing more than $1 million in annual EBITDAR and the operator couldn’t make their lease payment. In addition, the facility was part of the larger Rosewood Care Centers portfolio but had conventional debt on it (as opposed to HUD debt on the remaining Rosewood facilities). So, in cooperation with their lender, the private REIT owner decided to sell. Paying $3.3 million, or $23,400 per functional bed, a regional owner/operator with existing facilities in the market and across the Midwest emerged as the new owner.