An experienced local owner/operator in the Colorado market looking to grow its portfolio in Denver acquired a small memory care community in Aurora. Renew Saddle Rock was built in 2015 with 40 respite care and memory care units. Occupancy was around 85% based on 52 functional beds (there are 64 licensed beds), and the community operated at a 12% margin on nearly $3.5 million of revenues.
The new ownership group saw an opportunity to use its efficiencies and local knowledge to cut expenses and improve occupancy. An out-of-state private equity group was the previous owner and is now exiting the senior living space. They had hired Renew Senior Communities as the third-party manager.
Vince Viverito, Ryan Saul and Jason Punzel of Senior Living Investment Brokerage handled the sale, which came with a purchase price of $8.25 million, or $206,300 per unit. That is a healthy price for a small, nearly stabilized memory care community in today’s market.
