Nick Glaisner at Ziegler sold a senior living community just south of Minneapolis, Minnesota for an undisclosed price. Built in the late 2000s and originally conceived as a multifamily community, the Wisconsin-based family office seller converted it to senior living and opened with 105 units of independent living, assisted living and memory care. All units were licensed for assisted living, and the rural community catered to a middle market population. It was 81% occupied at the time of marketing and operated at a decent margin in the mid-20s, which was improving throughout the sale process.
That improvement helped portray future performance after some rent increases and operational efficiencies created by replacing the third-party manager were considered. Ziegler procured multiple offers from interested parties, and secured an undisclosed price at around a 4% cap rate based on trailing-12-month EBITDA. Based on future performance, the cap rate would be closer to 8.5% and 9%. Eden Senior Care, a regional operator with additional assets in Wisconsin and Minnesota, was selected as the buyer.
