Senior Care Realty is finishing the year strong with the sale of 15 assisted living communities in Wisconsin for $13.35 million, or about $60,000 per unit and $54,700 per licensed bed. Most of the communities are located in rural, northern Wisconsin towns and were built from the mid-1990s to the early-2000s, with a few newer communities in the mix too. Occupancy was in the low-80s before the pandemic but dropped to around 70%, with a roughly 85% Medicaid census. Nevertheless, the portfolio produced a healthy amount of cash flow, or nearly $1.27 million on $7.4 million of revenues, for a 17% margin. That results in a 9.5% cap rate. The seller owns a number of other communities in the state but decided to sell to an investor that partnered with an operating group to go ahead with the deal. They worked with a local community bank to finance the deal and plan to make some cosmetic improvements while also increasing census. Bob Richards of Senior Care Realty handled the deal.
Mr. Richards also sold a portfolio of four eight-bed assisted living communities (CBRFs) in the state. Built in the early 1990s and located side by side at the end of a cul-de-sac, just two of the communities were licensed at the time of the deal. That is because as census dropped, the owner consolidated its residents in the other communities, leaving the two that were still open fully occupied. The portfolio sold to a local individual for $800,000, or $25,000 per unit, at a 12% cap rate.
