A doctor in the field of gerontology decided to sell her only assisted living community in Saugerties, New York to another private individual owner in a transaction arranged by Dave Balow and Toby Siefert of Senior Living Investment Brokerage. The community is set in a 1900s-era house that was renovated in 2008 and 2014. It now features 40 beds in 30 units, with a license for Enhanced Care, which is a private pay-focused model providing additional care for residents in exchange for additional revenue.
Occupancy was strong (above 90%), so there is an opportunity to expand the current building and increase the unit count. The community operated at a roughly 11% margin on $2.12 million of revenues, but that margin rose as high as 18% during the sale process.
A new owner, after expanding the community, could very well improve that margin, especially taking advantage of the additional revenues from the Enhanced Care license. In the end, an individual with one other assisted living community in the Ithaca, New York area paid $2.85 million, or $95,000 per unit, at an 8.4% cap rate.
