Minnesota-based Ameritus Property Fund Durango, LLC acquired an assisted living community with a memory care wing in Durango, Colorado. Purpose-built in 1999 and operated by the original developer, the community is licensed for 70 total beds but operates with 56 units. Census and EBITDA had been declining for several years, and the owner decided to sell after the pandemic, exiting the Colorado market in the process.
The purchasing entity, Ameritus, approached the opportunity with the intent to purchase, but wanted to manage the community first. Management was handled by Cornerstone Management Services, a firm engaged in commercial and senior living management in Minnesota, Wisconsin, Iowa, and now Colorado. After bringing operational efficiency, expense management, and staffing support into the community, Ameritus proceeded with the purchase several months into the management contract. The property sold for $7.75 million, or about $140,000 per unit. Hayden Behnke of Panorama Commercial Group (and formerly of Blueprint Healthcare Real Estate Advisors) advised both parties on the deal.
