A not-for-profit senior care campus in Asbury, Iowa, found a new owner with the help of Jeff Binder, Jason Punzel and Jake Anderson of Senior Living Investment Brokerage. Dubuque, Iowa-based Luther Manor Communities had previously owned the campus, plus one location in its home town of Dubuque, before failing to pay back over $15.7 million in loans and having the locations fall into receivership in August 2023. Since then, they have been operated by Walnut Creek Managing Co. (an LLC affiliated with Tutera Senior Living, which operates in the region), and Kansas City-based attorney (and serial senior care receiver) Michael Flanagan was appointed as the receiver.
The Asbury campus included a newly built senior care portion with 16 assisted living, 32 memory care and 32 skilled nursing units/beds constructed between 2017 and 2019. There was also an affiliated entrance-fee townhome community also located in Asbury with 24 duplexes built between 2011 and 2019, 48 total units and some limited independent living services. Rents were also adjusted based on the size of the entrance fee and what portion of the fee would be refundable. Occupancy was strong across both locations, but they operated around breakeven.
SLIB was engaged by Flanagan to sell the whole campus. According to court documents, two buyers were found, Tutera for the Asbury campus and an unknown experienced operator for the Dubuque facility. The combined proposed purchase price comes to $29.8 million, or a $21.3 million ($166,000 per unit) offer for the Asbury campus. Meanwhile, the Dubuque location received an $8.5 million offer. It is not known what the final purchase prices are, but we imagine they were close to, if not equal, to the offers and would be an attractive basis considering the vintage of the buildings.
