A slew of sales were announced by Senior Living Investment Brokerage, closing just before we headed out to NIC. And they spanned the entire senior care spectrum. First, Matt Alley and Patrick Burke represented Invesque in the REIT’s sale of an independent living community in Arlington, Texas. Built in 2002 with 178 units, comprised of 24 studio, 130 one-bedroom and 24 two-bedroom units, the community was just 67% occupied at the start of marketing. The operating margin could also be significantly improved from 4.6% on approximately $3.4 million of revenues. A small regional owner/operator saw the opportunity to add value and acquired the community for $12.45 million, or $69,900 per unit.
Ryan Saul went solo to sell a 64-unit memory care community in Hazel Crest, Illinois, for $1.7 million, or $26,600 per unit. The seller was a skilled nursing owner who had acquired the community as part of a larger SNF portfolio. So, to focus on their core business, they decided to divest. Built in 2001, the community was licensed for shelter care and was 75% occupied at the time of the sale, with a 6.9% operating margin on about $2.36 million of revenues. There was also a closed wing that the buyer, a primarily a hospitality real estate owner with other small assisted living communities in Wisconsin, will look to reopen and convert to traditional assisted living. A $200,000 credit was given by the seller for physical plant improvements. The buyer will contract with an experienced third-party manager to oversee the turnaround.
Then, a 135-unit assisted living/memory care community in Gresham, Oregon found a new owner thanks to Brad Goodsell, Jason Punzel and Vince Viverito of SLIB. Built in 1988 and expanded in 1998, the community was previously the only asset owned by a Portland-based operator that is exiting the industry with this sale. It was 86% occupied and bringing in over $1.83 million in EBITDAR on more than $6.63 million of revenues, for a solid 28% margin. Still the buyer, a regional owner/operator looking to grow its Pacific Northwest holdings, will implement multiple capital improvement projects, including adding a bistro, movie theater and other common areas. The community sold for $25.5 million, or $188,900 per unit, at a 7.2% cap rate.
Messrs. Punzel and Goodsell were then joined by Jeff Binder to arrange the sale of a 143-bed skilled nursing facility in Yuma, Arizona. It was a geographical outlier for the national REIT owner, prompting the sale. Some serious improvements can be made at the property. Built in 1964, but with renovations made in 2011 and 2018, it was just 59% occupied across the 77 units. A regional operator with a strong presence and track record in Arizona will hope to reverse the facility’s fortunes.
Finally, Patrick Byrne sold a skilled nursing/assisted living portfolio for $32.3 million. We’ll cover the details for that later this week.
