Bob Richards of Senior Care Realty recently closed three separate seniors housing transactions in Wisconsin. First, Richards facilitated the sale of a community in southern Wisconsin on behalf of a seller who had owned the community for more than 25 years and was moving towards retirement. The stand-alone memory care community is on the smaller side with occupancy typically hovering above 90%. It briefly dipped below 90% at closing but the buyer remained confident in a rebound, which has since occurred following the acquisition.
Multiple operators placed bids, with the ultimate buyer being a newer owner/operator that was looking to expand its portfolio. The community, which traded at a 14.5% cap rate, was purchased for $1.21 million and financing was secured through a local community bank.
Next, Richards sold an assisted living community in east central Wisconsin that was being divested because it no longer fit the seller’s model. The community features three buildings, each with licensed assisted living units. One of the buildings was vacant and had been for some time. After multiple offers, the selected buyer was an owner/operator looking to enter the assisted living market. The purchase price was $1.8 million and it sold for a 12% cap rate.
Richards was most recently engaged by a seller that acquired a vacant RCAC as part of a larger portfolio acquisition. The community comprises 30 units that were not licensed at the time of the sale. Amid several bids from different types of investors, the winning buyer was a behavioral health investor that will convert the community to an alternative use. The purchase price was $1.58 million, or $53,000 per unit.
