Evans Senior Investments is keeping the closings coming, following up on its five deals in December with its first 2020 transaction. Located in Sellersville, Pennsylvania (about 30 miles north of downtown Philadelphia), the target was a 94-unit assisted living/memory care community. It was built in 2007 and renovated in 2018, with a current mix of 54 AL and 40 MC units. The recent updates included new flooring, full property furniture replacement and new dining operations.
Occupancy has been consistently strong, currently sitting at 94% with a 100% private pay census, and the community operated at a 24% EBITDAR margin. It was also implementing a substantial rate increase at the time of the sale, so that margin should rise. The independent owner/operator hired Evans to sell the community (their only one) to an East Coast-based REIT for $18.2 million, or $194,000 per unit, at a 7.2% cap rate. That should give the buyer some room to add value.