Two senior care communities sold in the western United States thanks to the Senior Living Investment Brokerage trio of Jason Punzel, Brad Goodsell and Vince Viverito. First up was an independent living/assisted living community in Logan, Utah that was owned by an in-state owner/operator whose investors wanted to recycle capital for new investments. Built in 1981 and 2015, it features 82 units and was 95% occupied. In addition, the community earned about $700,000 of EBITDAR on $1.845 million of revenues in trailing-three-month annualized figures, for a healthy 38% margin. A California/Colorado-based private owner paid $8.2 million, or $100,000 per unit, at an 8.5% cap rate, for the community. They plan to convert the building to all independent living units and have retained the seller to manage the property until all AL residents are relocated to a new community.
The SLIB group also sold a 94-unit assisted living/memory care community in Moreno Valley, California, for an undisclosed price. Featuring 125 total beds, the community was built in 2014 by a local developer focused mainly on the multifamily and commercial retail industries. That developer also managed the community, plus another seniors housing property, but occupancy sat at 60%, and it operated just below breakeven. However, that presented an opportunity to an experienced operator with scale, and as such, a West Coast-based regional provider looking to expand their presence in California emerged among six other offers to acquire the community.
