Toby Siefert and Dave Balow of Senior Living Investment Brokerage pulled out all the stops to close the sale of a seniors housing community in Denton, Maryland, on the Eastern Shore. Built in the mid-1980s, Homestead Manor Assisted Living and Heritage Community are a combined assisted living and independent living community on a shared campus, with 24 IL patio homes and 62 AL units. The patio homes have been continually at or near full occupancy with healthy cash flow, while the assisted living portion was still recovering from the pandemic, at 55%. Combined, the campus generated around $3.47 million of revenues, at an 11% margin.
Representing a private owner looking to divest their seniors housing portfolio and exit the industry, SLIB marketed the potential to improve the physical plant of the AL community to help it stabilize. Additionally, the existing lender was willing to stay in and lend to the buyer at market terms. That helped the eventual buyer, a newly formed partnership between two industry veterans, close the deal at $4.5 million, or $52,300 per unit. This was their first acquisition.
