A new senior living brokerage firm posted its first closing at the end of December, with several more on the way in the next couple of quarters. Andrew Montgomery is Co-Founder & Vice President of Montgomery Intermediary Group (MIG), part of a group of businesses run by the Montgomery family that include Americare Senior Living, Montgomery Bank and Montgomery Development, LP. With expertise in the Midwest, Southwest, and Southeast, particularly in the Missouri, Illinois, Kansas, Tennessee, and Mississippi markets, Andrew and MIG know about operations and investing in the industry. And now, they have their first closing under their belt.
The target was a 55-unit seniors housing community in northwestern Illinois. Originally built as a school in 1847, the structure was renovated in 1983 and 2013. It features a mix of independent living, assisted living and memory care services. Operations were steady before the pandemic, with occupancy in the mid-80s, but that declined to 75% by June 2021 and to 64% by the time of closing. Cash flow remained positive, and the census was 100% private pay, but a regional developer/owner/operator seller wanted to exit the business. A regional SNF owner looking to get into the assisted living market emerged as the buyer. The price was not disclosed, but the community reportedly sold at an 11% cap rate. Mr. Montgomery closed the deal in the waning hours of 2021, and then it was on to 2022, with a few sales scheduled to close in the coming months.
