Daniel Geraghty, Bradley Clousing and Dave Balow of Senior Living Investment Brokerage have sold a seniors housing community in the Georgia town of Statham, which is located in between Atlanta and Athens. A family owner/operator originally developed the community in 1997 and decided early in 2020 to divest their only asset and retire from the business.
They are leaving behind a strong operation, as the property has consistently maintained occupancy between 90% and 100% across the 46 personal care units, all of which were studios. There is an opportunity to convert some of those units into two-bedroom options, as well as improve the operating margin.
That is what garnered the attention of several buyers, before Cedar Communities emerged as the winning bidder (for an undisclosed price). With five other properties in its portfolio, including four within 50 miles of the Statham community, Cedar Communities should be able to bring in some economies of scale. That will help, as two new competitors targeting higher income residents are expected to open soon in the next town over. The Statham community has historically catered to more middle market residents, but that new competition still puts pressure on staff retention, the ability to raise rents and maintaining (or more often these days, rebuilding) census.