Mark Van Den Broeke of Senior Care Realty certainly had his hands full in the sale of a 66-unit assisted living community in northeast Wisconsin. That’s because in addition to working with the current tenant, he worked with the two individual landlords of the property too.
Originally built in 2012, the property is made up of three 22-unit buildings, two of which were owned by one landlord, with the other building owned by the second landlord. Occupancy was 79%, with a 100% Medicaid census, and in 2018 it was earning about $500,000 in NOI on nearly $2.5 million of revenues.
The tenant, who owned the operations, was looking to exit the business when the lease ended in a few years, but she was already failing to make payments. The landlords, each working with an independent broker, wanted to sell the buildings, and as a neutral party, Mr. Van Den Broeke approached the tenant to determine her interest in selling the business as well. So, structuring a deal with the three parties, their brokers, lawyers and banks, he sold the whole package to a Midwest regional operator with about 50 properties in its portfolio for $5 million, or $75,800 per unit, at a 10% cap rate.
