A private equity firm acquired a couple of former Atria Senior Living-managed assisted living communities in upstate New York. Located within 15 miles of each other near Rochester in the towns of Greece and Penfield, the communities combine for 168 units and 199 beds of assisted living. They were previously owned by a private real estate development and investment company based in Rochester that had hired Atria to manage the communities for the last several years. However, the seller wished to focus on other strategic initiatives within its organization, such as residential communities, while also maintaining a presence in the seniors housing space.
Despite being of an older vintage, with both communities built in the early 1970s and one location getting an addition in 1992, the assets were well maintained over the years. Operationally, they could improve. One location was 87% occupied, while the other was just 71% occupied. The two communities also generated $5.55 million of revenues but lost nearly $900,000 in the 12-month period ending September 2022. The new owner, an out-of-state private equity firm, will be able to take advantage of the properties’ proximity to each other to realize operational efficiencies in conjunction with additional upcoming acquisitions that it is making in the Rochester area in the near future.
There were multiple offers from regional and national buyers, but the eventual buyer paid $6.75 million, or $40,200 per unit, for the communities and hired a New York-based operator to manage them going forward. Dave Balow, Jeff Binder and Jason Punzel of Senior Living Investment Brokerage handled the transaction.
