Andrew Montgomery, Co-Founder and Vice President of Montgomery Intermediary Group, announced a couple of senior care sales in the Southeast. First, in Georgia, Mr. Montgomery represented the buyer of a 96-unit assisted living/memory care community that was previously owned by a mom & pop organization. Built in 2016, the community was 85% occupied when the LOI was signed. The buyer, made up of a new seniors housing management company based in Dallas, Empower Living, and its private equity capital partner, Aspire Ventures, also based in Dallas, acquired the community at a mid-7% cap rate based on 2021 figures. Both Mark Reisman (Empower Living) and Ramana Korada (Aspire Ventures) have ambitions to grow their holdings in the seniors housing space.
Next, Mr. Montgomery represented the seller of a small residential care facility in Missouri. Built in 2009, the community was fully occupied and earned EBITDAR of $100,000 in 2021. However, its owner/operator/developer was looking to retire, and the buyer is a local operator who wants to grow on their existing portfolio. They paid $1.15 million, or nearly $60,000 per unit, for the community and hope to take advantage of a 2022 rent increase, as well as efficiencies on the expense side. A local bank provided an acquisition loan for the deal.
