Scribner Capital and William James Group (WJG) have joint ventured to acquire two assisted living/memory care communities in Georgia from a local owner/operator looking to exit the industry. Scribner provided co-sponsor equity and leveraged its network of high-net-worth investors to provide the limited partner equity. WJG provided co-sponsor equity as well and will operate the communities on behalf of the venture.
The purchase price was not disclosed, but the communities sold for a cap rate in the mid-8s, slightly higher than the sector’s average in the last few years. Daniel Geraghty and Brad Clousing of Senior Living Investment Brokerage handled the transaction.
Built in 2007, Sunny Grove Assisted Living in Barnesville features 34 units and was around 97% occupied. River Place Assisted Living in Forsyth was built more recently in 2017 and features 35 units with 93% occupancy. There is an expansion opportunity at the Barnesville location, which given the consistently high occupancy could be a smart move. In addition, the communities are located 12 miles from each other in central Georgia between Atlanta and Macon, so ownership can exploit some efficiencies. South Carolina-based William James Group was founded by Jimmy Justice and Marcel Tremble, who were both previously regional directors for Senior Living Communities and have years of operating experience. This may not be the last Scribner/WJG partnership we see.
Last month, Scribner Capital and its institutional capital partner also helped a joint venture between Inspirit Senior Living and Venue Capital acquire two seniors housing assets in Tennessee by arranging JV equity to fund the deal. Located in Knoxville and Powell, the communities feature 60 assisted living/memory care units and 40 memory care units, respectively. Divested by a private REIT and its national operating partner Merrill Gardens which deemed them to be operational outliers, they will be rebranded as Rain Forest Landings in Knoxville and Emory Ridge in Powell. Senior Living Investment Brokerage’s marketing process yielded six qualified offers, with the seller selecting Inspirit and Venue.
