A small owner/operator added to its upstate New York holdings with the acquisition of a 29-unit assisted living community in the town of Randolph, in between Buffalo and Erie. The buyer, Willow Ridge Senior Living, already owns a small adult home in Albany and an 89-unit assisted living/memory care community in Wellsville that it acquired in August 2021 for $8 million, or $89,900 per unit, at a 7% cap rate. The principal for Willow Ridge is Mike Morris, a former Brookdale Senior Living and Holiday Retirement executive that is now building his own portfolio.
The Randolph property was originally built in the 1880s but was converted to assisted living in 1992, with an expansion in 2003. There are 50 beds in 29 units, and occupancy was 76% based on units. It was family owned for decades, but the second-generation owners were looking to divest. Willow Ridge will look to bring the private pay census from 70-80% to around 100%, in addition to bringing some economies of scale. The community was also operating at a roughly 17% margin on more than $1.1 million of 2021 revenues, which could be improved.
The buyer paid $2.6 million, or $89,650 per unit, at a 7.2% cap rate. Dave Balow of Senior Living Investment Brokerage handled the transaction, in addition to the Wellsville sale last year. BLC Lending provided acquisition financing for the deal.
