Haven Senior Investments announced a couple of seniors housing closings within a matter of weeks. The two deals featured small assisted living communities owned by families looking to exit the industry, a common theme of sales in the last year. Haven’s Rebecca Van Wieren and Robin Gestal handled the transactions.
First, the team sold a newly built assisted living community in an affluent suburb of San Antonio, Texas. A husband and wife team of doctors with a passion for caring for seniors built the community in 2017, but decided to sell and pass the baton to another operator more focused on seniors housing. The Type-A community features 40 beds in 28 units (with a bathroom in each unit), but the community had filled all 28 relatively large rooms, with no double occupancy in any of them at the time of the deal. So, there is an opportunity to increase the census. Revenues reached $1.1 million, but the operating margin could be improved through expense management, increased census and higher rents.
A small, local operator took on the opportunity, paying $3.75 million, or $133,900 per unit, and financing the deal with a commercial loan.
Haven next sold a small Medicaid assisted living/personal care community in the Highlands neighborhood of Denver, Colorado, that had been owned and operated by the same family for four generations. The granddaughter of the original owners, whose daughter also worked at the community, decided to retire and sell the community. Originally constructed in 1943 with a series of additions in the 1970s, Decatur West Personal Care featured 32 licensed beds and 20 units. Occupancy was stabilized around 85%, and the community operated at a roughly 26% margin.
A local operator that owns another property in the area paid $2.287 million, or $114,400 per unit, using an SBA loan to finance the deal. They are planning significant capital improvements to the property.
