Senior Living Investment Brokerage’s Active August

It has already been an active August for Senior Living Investment Brokerage, which closed four deals on the first of the month, one of which we already covered last week.

First up, Jason Punzel sold a seniors housing property in Brookings, Oregon. Built in 1999 and 2004 on a 17-acre site, the all-memory care community has 55 beds in 40 units. It was deemed to be non-core by its REIT owner, with occupancy sitting at just 75% and operating margin falling below 10% on nearly $2.8 million of revenues. The new owner will look to utilize its strong presence in Oregon to improve operations. They left some room to add value, paying $3.45 million, or $86,250 per unit.

Then, the team of Ryan Saul, Jeff Binder and Patrick Byrne represented a large seniors housing owner/operator in Illinois divesting a non-core asset in Peoria. Originally built in 1970 as a hotel, the community was renovated and converted to a 100-unit supportive living facility in 2011. Operations could improve, with occupancy standing at 86% and the margin coming in just above 17% on $3.08 million of revenues. The community sold to a growing supportive living owner/operator with other facilities in Illinois for $8.2 million, or $82,000 per unit, and at a 6.5% cap rate.

Finally, transitional care facilities are popular acquisition targets these days and stand a good chance of thriving in both today’s and tomorrow’s SNF market, but Toby Siefert, Matthew Alley and Nick Cacciabando’s latest deal shows that a brand-new physical plant isn’t everything. Despite its age (built in 1968) and location far from a major MSA, a 186-bed skilled nursing facility in Chambersburg, Pennsylvania, boasts strong cash flow and just sold for $21.5 million, or $115,600 per unit. The facility was bringing in nearly $3.0 million of EBITDAR on over $18.1 million of revenues, or an operating margin above 16%. Occupancy was also solid at 88%. The previous owner has a small presence in the state but decided to sell to focus on its core markets. A regional owner/operator with two decades of operational experience acquired the facility at a 13.7% cap rate.

 

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