Dave Balow just closed Senior Living Investment Brokerage’s first deal of 2020, featuring a 42-unit active adult community in Ithaca, New York. Built in 1986 with all cottage-style apartments, the community was well-maintained and boasts a long wait list. It’s not affiliated with Cornell University, but apparently a number of Cornell professors live there. Operations were strong, with a 46% margin on about $1.1 million of revenues, but its private owner was looking to retire.
The buyer is an Ithaca-based senior living owner/operator group that has a strong senior living footprint in the area and is partnered with several individuals to further develop the adjacent land to add more cottages. With full occupancy and a wait list, that makes sense and should grow cash flow. The buyer paid $8 million, or $190,500 per unit, at a 6.3% cap rate.
