Senior Living Investment Brokerage’s Brad Clousing and Daniel Geraghty have successfully closed the sale of Heritage Assisted Living & Memory Care in Madison, Alabama. Built in 2015, the 46-unit (30 AL, 16 MC units) assisted living community sits on five acres near the Alabama-Tennessee border. The community maintained an occupancy rate of 96% at the time of sale but struggled with rental rates and other expenses.
The seller was a local group of physicians who divested the asset for $5.1 million, or $110,900 per unit, at a cap rate of 7.2% based on annualized trailing figures. At the time of sale, the community was bringing in around $2.2 million in revenue and $370,000 of EBITDAR, but it was not fully stabilized in regard to rental rates and expenses. An Alabama-based regional owner/operator which focuses on the Tennessee and Alabama markets bought the property with the intention of stabilizing and holding it in their portfolio for the long-term.
