Evans Senior Investments handled the sale of an assisted living/memory care community in Rome, New York, about 15 miles northwest of Utica. Built in 2009, the community is licensed for 48 AL and 12 MC beds, and also holds an Assisted Living Program (ALP) Medicaid license on 16 beds. Over the past 12 months, it has averaged 90% occupancy, with an 80% private pay census. Its operating margin has also been strong, at 29% on more than $2.6 million of revenues. But that could be improved by a new and potentially larger owner.
The independent owner/operator worked with Evans to find a buyer, which ended up being a regional owner/operator looking to expand its presence in the state and make use of operational synergies to improve performance. They ended up paying $10.0 million, or $217,000 per unit. Based on trailing-12-month financials ended January 2021, the community sold at a 7.5% cap rate, which falls about 40 basis points short of the average assisted living cap rate in 2020, according to our soon-to-be-published 26th Edition of The Senior Care Acquisition Report.
