Vince Viverito and Brad Clousing of Senior Living Investment Brokerage successfully sold a 145-unit seniors housing community in Bountiful, Utah, on behalf of its REIT owner that was looking to exit the state and focus on its core markets. Built in 1978 and 1999, the community features independent living, assisted living and memory care units. Occupancy was 70%, and the community had a significant Medicaid census that impacted operating margin. At the time of marketing, the community was losing nearly $1 million on $3.2 million of revenues, so some expense management could also be in store. There was a good amount of agency labor that could theoretically burn off in the near-term, which would help.
A California-based private equity group partnered with a Salt Lake City-based management company to acquire the community for $7.85 million, or $54,100 per unit. They plan to invest heavily in renovations and improve operations.
