Alec Blanc of Monarch Advisors announced an acquisition financing for a couple of assisted living communities in Kentucky. Located in Bardstown and Elizabethtown, just under 30 miles from each other, the communities combine for 84 units. Occupancy was around 80% in 2020. They were previously owned by a California-based owner/operator, but the buyer/borrower, WalkLight Senior Living, was looking to make its first-ever acquisition, although the owners are experienced in operations. They also saw an opportunity to potentially raise rates at the locations to improve operations. Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage handled the sale.
Monarch secured a commitment from a national SBA lender or a 7a loan totaling approximately $3.0 million. It came with a fully amortizing 25-year term and rate of Prime+2.25%. Together with a small seller note, the acquisition debt represents about 80% of the total transaction costs, putting the purchase price at $3.75 million, or $44,600 per unit. WalkLight plans to eventually refinance through HUD in three to five years.
