Chad Wegner of Senior Care Realty facilitated the sale of a RCAC in Northeast Wisconsin on behalf of a long-term operator. The RCAC had been family owned/operated since inception, and the seller decided to pass the torch and enter retirement. Purpose built in 2014 and expanded in 2017, this well-maintained community features 19 individual apartments with a mix of independent living and assisted living services in the Green Bay market. It maintained high occupancy and was cash flowing at the time of sale with the seller operating near a 30% profit margin.
After multiple offers, the selected buyer was a local multifamily investor with a nursing background that was looking to expand into seniors housing. The investor will also operate the community going forward. The property sold for $2.2 million, or $116,000 per unit, with it trading at around a 10% cap rate. Most of the capital used to acquire the community came from a 1031 exchange tied to a property the buyer had sold, with the remainder provided through seller financing.
