Bob Richards of Senior Care Realty represented a husband and wife team in their sale of a small assisted living community in Manitowoc, Wisconsin, thereby allowing them to retire from the business. This was their only senior care asset, which they developed in 2014 to feature 24 assisted living units and 26 beds, with a small portion of those set aside for memory care. Operations were strong with occupancy in the mid-90s and an operating margin of 31% on about $1.1 million of revenues, which did not drop off much as a result of the pandemic.
With such consistent performance, there was also no movement on the final purchase price negotiated before COVID of $3.1 million, or $130,000 per unit, at a 10.9% cap rate. That’s impressive work. The buyer was a regional owner/operator with other communities in Wisconsin that used a lending partner to secure conventional debt for the deal.