Evans Senior Investments kicked off the fourth quarter with a couple of deals involving seniors housing properties. The first involved a 154-unit campus in Cottage Grove, Wisconsin that has grown over the last 15 years to include 60 independent living, 70 assisted living and 24 memory care units. It initially opened in 2006 with the AL community, then added the memory care in 2016 and finally the independent living community in January 2018. Occupancy exceeded 93% across the campus for the past few years, and even higher at the brand-new IL portion.
Revenues and EBITDAR consistently hovered over $6 million and $2.2 million on an annualized basis, respectively, although we imagine there was some impact from the pandemic. Its independent owner hired Evans Senior Investments to sell the campus to Capri Communities, a large regional owner/operator. The purchase price was not disclosed in this deal.
The other transaction saw a 117-unit assisted living/memory care community in Rocky River, Ohio sell for $4.8 million, or $41,000 per unit. Originally built in 1967 as a hotel and converted to senior living in 1986, this community is located less than 10 miles from downtown Cleveland. It features a majority of assisted living units (108) and only a small portion of memory care, with nine units.
Occupancy was 90% at the time of marketing, with a private pay census surpassing 70%. In that time, it was operating at an 18% EBITDAR margin, which could certainly be improved, but occupancy took a tumble since March, falling to 72% as of the closing date. Again, Evans Senior Investments represented the seller, a local independent owner. The undisclosed buyer will bring in regional operator Embassy Healthcare to manage the community going forward.
