Jacob Gehl and Humair Sabir of Blueprint Healthcare Real Estate Advisors kicked off the firm’s 2021 M&A activity with a memory care sale in Kerrville, Texas. Built in 2001 with 36 units, the community was last acquired in 2014 by a private partnership for $2.4 million, or $66,700 per unit, according to our M&A deal database.
It was losing money at the time because of high staff turnover, but thanks to a good reputation in the local market and vastly increasing its staff tenure, the community was operating well, with occupancy regularly above 90% and the operating margin around 30%.
Still, a new owner could take advantage of scale to grow cash flow even more, and that is what New Haven Assisted Living & Memory Care plans to do, with its 10 communities located across the state. No purchase price was disclosed, but considering the operational improvements over the years, we assume the seller is walking away happy.
