Samaritan Health Services, an Oregon-based not-for-profit integrated health system, sold a seniors housing community in Sweet Home, Oregon that it had picked up in a merger but has since deemed to be non-core. Samaritan engaged Helios Healthcare Advisors to market the property and procure a buyer, which ended up being Mosaic Management, a regional operator with a presence in the local market. Mosaic paid $4.2 million, or $65,600 per unit. There was no cap rate on the deal, since the community was losing about $350,000 in EBITDAR.
Built in the late 1990s, it includes 44 assisted living units in one building and 20 independent living units between five buildings. Occupancy was around 70%. Mosaic plans to add memory care units, which has already received support from the city council and local municipalities. Plus, Samaritan retained a portion of the parcel sold and has plans to construct an urgent care clinic contiguous to the senior campus which will help create a more integrated setting. Sounds like a win-win.
