There is certainly no summer slump for Senior Living Investment Brokerage, which started off August well with three closings. That activity included a portfolio of three well-performing seniors housing communities in Montana and Oregon selling to a West Coast not-for-profit. The properties are located in Sweet Home and Cottage Grove, Oregon, and Great Falls, Montana. Jason Punzel, Brad Goodsell, Vince Viverito and Jake Anderson represented the regional operator seller, which developed and recently remodeled the communities. Two were built in the late-1990s, and one opened in 2001. There are 190 assisted living, 77 memory care and 23 independent living units, with 332 total beds.
The three communities sold for a combined $77.8 million, or $271,100 per unit. Occupancy was strong, averaging 95%, and we believe the operating margin was close to 35%. That healthy performance, combined with the communities’ age, could put the cap rate close to 8%, based on our estimate. The buyer funded the transaction using tax-exempt bonds, and the seller plans to use the proceeds to expand its portfolio.
Next, Toby Siefert handled the sale of a skilled nursing/memory care facility in Northborough, Massachusetts, on behalf of a private owner looking to retire from the industry. Finding the right buyer was important to the seller, so Siefert sourced Alliance Health and Human Services, a not-for-profit owner/operator of several skilled nursing and rehab facilities in Massachusetts, to take over the campus. Built in 1999, the campus includes 45 skilled nursing beds and 12 memory care units (22 MC beds). It was operating profitably, but no details were disclosed. The buyer assumed the existing HUD debt balance through a quick TPA process.
Lastly, Dan Geraghty, Dave Balow and Brad Clousing sold a 104-unit assisted living/memory care community in Florence, Kentucky. Built in 2007 on nearly 12 acres, Fields of Florence is well maintained and competes well in the local market. The private equity seller had purchased the asset in March 2024 (see the deal here on LevinPro LTC) when it was 60% occupied, but its operator turned around the operations quickly, with occupancy reaching 85%. So, the PE firm approached SLIB to conduct a tight marketing process, finding another private equity group with a strong Southeast-based operating partner to take over.
