On the eve of the NIC Conference in Chicago, Andrew Montgomery of Montgomery Intermediary Group facilitated the sale of an assisted living community in Memphis, Tennessee. Built in 1997 with 85 units, the community was bought out of bankruptcy in 2010 by the current owner/seller. It was operational as an assisted living community until October 2022, when ownership decided to shut it down after some tenant difficulties. The property sold vacant, and we would guess given the vintage and the lack of census, the per-unit price could not have surpassed $50,000 per unit.
A private investor bought the asset, utilizing an existing lending relationship to obtain bridge debt for the deal. The buyer invests in different types of real estate, including senior living, and while under contract on this deal, they got a zoning variance in place that permits a behavioral health use. They are currently looking to find a tenant within the behavioral health and or nursing home space to execute a lease-to-purchase agreement.
