The team at Senior Living Investment Brokerage kicked off the third quarter with the sale of two seniors housing communities in the Midwest. Ryan Saul first sold a 73-unit assisted living/memory care community in Chillicothe, Illinois, for $8.2 million, or $112,300 per unit. The asset was part of a larger portfolio of skilled nursing facilities that was for sale, but the Illinois-based buyer of the portfolio elected to sell this community because they did not specialize in assisted living.
Built in 2015, the community was 81% occupied and operated at a 17% margin on approximately $3.68 million of revenues. The buyer was a Midwest-based owner that had actually built the campus in 2015 and was now looking to strategically grow in Illinois. They engaged the previous operator to continue the positive trend towards stabilization. The transaction, which saw multiple offers from regional and local buyers, closed in 50 days from the letter of intent.
Next, Nick Cacciabando closed the sale of Vintage Park Apartments, a 40-unit assisted living/memory care community in Lenox, Iowa. Built in 1998, the community is licensed for 75 beds but was 100% occupied based on units. It operated at a 19% margin on nearly $1.89 million of revenues. The seller was a local owner/operator that was looking to exit the seniors housing sector. A joint venture between an East Coast investor and a growing Midwest operator bought the community for $3.25 million, or $81,300 per unit, at an 11.0% cap rate.
This was the second Iowa purchase for the JV, which has several other acquisitions in the pipeline. They are predominantly focused on the skilled nursing sector, but they are attempting to diversify the portfolio by acquiring cash flowing assisted living communities.
