Senior Living Investment Brokerage announced two sales in the Southeast. First, Daniel Geraghty and Bradley Clousing represented a local owner in their exit from the seniors housing market by selling their personal care home in Holly Springs, Mississippi. Built in 1999, the community has 38 units (all of which feature a private bathroom), with 11 dedicated to memory care. There is limited competition, and the community has historically been well occupied, currently at 95%. It also has a good local reputation. However, the operating margin could be improved significantly from 8% on approximately $1.45 million of revenues. The buyer, a regional owner/operator based in Mississippi, plans to increase the bed count and take advantage of the Medicaid waiver program to improve cash flow. After a marketing period of 60 days, the seller received three offers and agreed on a price of $2.75 million, or $72,400 per unit.
Then, in Staunton, Virginia, Mr. Clousing was joined by Toby Siefert and Dave Balow to sell two assisted living communities that were considered to be operational outliers by the previous owner, Avante. Located less than a mile from each other (close enough to get an exemption for having an administrator with a separate license for each building), the communities were built in the 1990s and are usually well occupied (averaging 98%). Similar to the Holly Springs sale, their cash flow could be improved, with around $95,000 of EBITDAR on about $2.38 million of revenues, for a 4% margin. The transaction was subject to a HUD TPA assumption, but a private owner/operator based in New York stepped in to acquire the communities for $5 million, or $90,900 per unit.
