The summer heat isn’t getting to Brad Clousing of Senior Living Investment Brokerage, who recently closed two transactions in the Southeast.
First, Mr. Clousing was joined by Daniel Geraghty and Dave Balow to sell a personal care community about 65 miles northeast of Atlanta. Originally built in 1994, the community operates with 24 private personal care units and 10 semi-private memory care units. It was extensively renovated in 2015 and offers additional room for an expansion. With the renovation complete and the community stabilized at 97% occupancy, its local owner/operator decided to exit the asset. A Northeast owner/operator entered the Georgia market with its purchase of the community, which sold for $3.25 million, or $95,600 per unit, at a 9.25% cap rate on trailing three-month financials. While this is the first Peach State purchase for the buyer, they have an existing portfolio in the Southeast that should help with the transition.
Then, in Lake Alfred, Florida (between Tampa and Orlando), Mr. Clousing went solo to sell a 67-unit assisted living community to a Canadian ownership group. The building was originally built in 1925, with a dining room added in 1985, but was totally renovated after the community was damaged by a hurricane. Since then, it has been well maintained and most recently reported 97% occupancy and a 23% margin on nearly $2.1 million of revenues. Its previous owner is exiting the asset to consolidate its operations in the Tampa/Clearwater market. The buyer teamed up with a local operating partner on this transaction and paid $5.3 million, or $79,100 per unit, at a 9.2% cap rate.
