It’s been a record-setting year, so far, for M&A activity, and 2024 could mark a record for Senior Living Investment Brokerage, as well. After a little more than half the year, the firm has so far closed 42 transactions, split between 28 seniors housing and 14 skilled nursing deals, comprising 62 total properties across 30 states. Sellers spanned the not-for-profit world, private owners seeking retirement, and institutional players right-sizing their portfolios, while buyers ranged from individual private owners to regional companies to institutional capital partnering with quality operators for growth.
All told, those deals were worth more than $370 million. SLIB’s 2023 activity topped 70 transactions, while its all-time high reached 83 deals in 2021. With 50+ deals in various stages of the pipeline scheduled to close before the end of the year, a new record is within reach. And if their August is any sign, it is looking good. Knock on wood, and hope for one or two rate cuts.
The August closings piled up, starting with the sale of a portfolio of seniors housing assets in Henderson, Kentucky. The seller, which operated these communities since their inception, was retiring from the business. The buyer is a Kentucky-based owner/operator looking to expand in Western Kentucky.
The portfolio includes four communities that total 158 assisted living and independent living units with average occupancy at 52%. Across the locations, revenues topped $3.64 million and EBITDAR was around $200,000.
Built in 2000, Colonial Assisted Living comprises 69 AL units, while Colonial Court Independent Living has 22 IL units and was built in 2014. These two communities sit on the same campus. The other two properties included Colonial Senior Living with 51 AL units (built in 2017) and Colonial Cottages with 16 IL units (built in 2019). Ryan Saul and Daniel Geraghty sold the portfolio for $10 million, or $63,300 per unit.
Next, SLIB sold a seniors housing community in Marietta, Georgia, just northwest of Atlanta in Cobb County. Built in 1998, Heritage of Marietta is a community with 44 assisted living and 13 memory care units that is well-maintained and in excellent condition. Daniel Geraghty and Bradley Clousing handled the national, yet confidential transaction.
The seller was a senior living investment group divesting its only Georgia asset to focus on its core portfolio. There were multiple offers from both regional and local buyers. The ultimate buyer, a Georgia-based regional owner/operator, is looking to expand its existing presence in Georgia, specifically east of Atlanta. The purchase price was not disclosed.
