Jeff Binder of Senior Living Investment Brokerage closed on the sale of a portfolio of small memory care communities in early May known as the Lavender Ridge portfolio. Located in Effingham, Jacksonville, Mt. Vernon and Olney, Illinois, all four communities are within a 150-mile radius of the St. Louis, Missouri metropolitan area.
There are a total of 112 units (118 beds) that were built in 2009, 2010, 2013 and 2017. They average about 28 units each, and also average about 15,500 square feet per building. All but one of the communities have space to build a 14-unit wing, which the buyer just may consider given that occupancy averages 92%.
Annualized revenues for the three months ended October 31, 2021 were close to $6.05 million, which means that rates were close to $5,000 per month. The seller was a regional owner and operator looking to exit the seniors housing business, and the buyer is a Midwest regional owner and operator seeking to expand their portfolio into Illinois and balancing their portfolio with more non-SNF, private-paying properties.
