As of the writing of this, Senior Living Investment Brokerage has now closed 39 seniors housing and care transactions in 2021. Their total for the whole year of 2020: 39 deals. To hit that mark before the end of June is impressive, to say the least. Pushing them to that number were three transactions in the Southwest announced in quick succession.
The first was an assisted living/memory care sale in Las Vegas, Nevada, handled by Vince Viverito, Jason Punzel and Brad Goodsell. Built in 2016 by a local developer (who is now the seller), the community has 119 beds in 98 units. A third-party operator managed the community, but the buyer, a national private equity fund, will bring in a different third-party manager.
There is definitely room for improvement in the operations. Occupancy reached just 60%, and the community brought in nearly $630,000 in EBITDAR on approximately $3.93 million of revenues, for a 16% margin. The purchase price of $20.18 million, or $205,900 per unit, leaves some wiggle room to add value. Increasing occupancy and then the margin will be how to do it.
Mr. Viverito was then joined by Matthew Alley to sell three skilled nursing facilities in coastal Texas. A regional operator previously owned the portfolio, which has two locations in Port Arthur on the Louisiana border and one in Galveston. The two Port Arthur facilities are located within two miles of each other, and all are enrolled in QIPP, which provides additional revenue to facilities. They were built from the 1960s to the 1990s, with renovations in 2013 and 2019. Despite occupancy being just 48%, the facilities did generate over $1.025 million in EBITDAR on $20.39 million of revenues.
A regional owner/operator based in Utah bought the portfolio in order to expand their presence in Texas. They paid $22.5 million, or $45,600 per bed, and plan to invest in additional capex.
The same Utah-based buyer also acquired a 148-bed skilled nursing facility in Houston, Texas, for $4.045 million, or $27,300 per bed, for a 9.8% cap rate. Built in 1955 and renovated in 2009, the facility was 45% occupied, but still brought in nearly $400,000 in EBITDAR on $5.86 million of revenues. The facility was also enrolled in QIPP. Messrs. Viverito and Alley worked on this deal too.
