Nick Stahler and Chad Mundy of The Knapp-Stahler Group at Marcus & Millichap sold an assisted living/memory care community in a suburb of Salt Lake City, Utah, on behalf of a single-asset owner/operator. The 48-unit/56-bed community was built in 2003 and traded for $4.2 million, or $87,500 per unit. It was 90% occupied, with a modest 19% Medicaid population. The community historically enjoyed a strong private pay case mix and census but recently struggled with compressed profit margins.
Ultimately, the buyer, a prominent regional owner/operator, saw significant value in the existing, assumable HUD debt along with immediate expansion plans to not only expand capacity but also increase labor efficiencies.
