On the heels of his closing in Minnesota, Bob Richards of Senior Care Realty headed over to Wisconsin to sell a small assisted living community in Dane County. Built in the mid-1990s, the community featured 20 units and a mostly Medicaid census. But occupancy was 100%, and the community operated at a strong margin above 30%. That is impressive, considering its size. It ended up being too small for the regional owner/operator’s typical model, so it sold to an East Coast owner/operator with a growing Wisconsin portfolio. The purchase price came to $1.8 million, or $90,000 per unit.
VIUM Capital helped finance the acquisition for the buyer, which has now purchased four small assets in the surrounding area in the last five months. They first bought three eight-unit assets for all cash in August for $4.95 million, or $206,250 per unit (Chad Wegner of Senior Care Realty handled that deal), and then VIUM completed an 80% LTC, three-year bridge financing for $6.3 million in total, including a $1.2 million earnout, to both recapitalize the acquisition of the first three assets and then effectuate the acquisition of the last community in Dane County. The transactions included two different sellers. In total, the buyer acquired 44 units across the area and will bring them all under one operating platform/regional team.
