Eads Investment Brokerage facilitated the sale of seven seniors housing communities in and around Saint Louis, Missouri. Patrick Byrne, who has sold 23 communities in Missouri since 2022, handled the transaction.
First, Eads represented a regional owner/operator downsizing to focus on its core markets in the sale of a 96-bed skilled nursing facility with a mostly Medicaid census in Saint Peters. It was operating well and sold for approximately $5.4 million, or $63,000 per bed. Turnover at key leadership positions largely accounted for post-pandemic census and regulatory challenges. The facility averaged 73% census in 2023, producing $5.5 million in revenues, and it was trending upwards.
Next, Eads closed on a six property, 200-bed assisted living and residential care portfolio, all located in the Saint Louis area. Four properties were within a 30-minute radius of Saint Louis, with the other two communities located in neighboring Franklin and Crawford Counties.
The Class-C portfolio has a mix of a purpose-built community and converted houses/mansions that are in need of significant capex. The portfolio sold for $7.75 million, with the lone assisted living community carrying $3 million, or $75,000 per unit of the sale price. The remaining 160 beds of residential care, which operate with mostly Medicaid in semi-private rooms, accounted for $4.75 million of the sale price, or $30,000 per bed.
The cap rate was approximately 12.2% but carving out the one, non-performing community brings the cap rate to over 13%. The seller was a local family retiring from the seniors housing business, and the buyer was an East Coast-based group with a local operating partner that also has an equity stake in the deal.
