Six years after it last traded hands, a stabilized senior living community in Sedalia, Missouri, sold to an owner/operator with the help of Jeff Binder of Senior Living Investment Brokerage. Located about 90 miles southeast of Kansas City, the community was built in stages in 2007, 2010 and 2015, and now features 129 units of independent living and assisted living, including some high-acuity AL units.
In 2017, it was divested by a regional operator to a Texas-based private investment group for $15 million, or $116,300 per unit, and at an 8.0% cap rate. SLIB worked on that deal, as well. At the time, occupancy was above 95%, and the community was operating at a 27% margin. Current operations were not disclosed, but the community was performing well. And there is additional room for expansion on the property.
Primrose Retirement Communities, a long-standing seniors housing operator with over 30 communities in 17 states, stepped in to acquire the community for an undisclosed amount. Primrose had recently shifted its growth focus from development to acquisitions, due to the higher development costs. Plus, it has existing communities in Jefferson City and Kansas City, so the deal made sense.
