A small personal care home in Allentown, Pennsylvania, will transition to 100% memory care after a New Jersey-based operator acquired the community for $2.25 million, or $112,500 per unit. The purchase included an adjacent home that was used by the community for various purposes, which pushed the final price up in the end.
Built in 1948 and expanded in 2002, the community had around 19 residents at the time of marketing, with monthly rents ranging between $1,800 and $2,500. It operated at a healthy margin around 28%, but new ownership saw an opportunity to convert the community to 100% memory care and command rents closer to $4,000 per month. Some cosmetic renovations will also be made during the transition.
The previous family owner/operator previously divested a couple of large communities and has now exited the sector with this sale. Helped with proceeds from those previous deals, the seller financed the Allentown transaction.
