A Dallas-based private investment firm purchased a couple of seniors housing communities in Texas and Oklahoma. Both 1990s-built communities were losing nearly $1 million at the time of the sales, so they offered significant upside.
The Carrollton, Texas, community was built in 1996 and renovated in both 2009 and 2016. In addition, it received a memory care expansion in 2014 and currently features 62 units. Occupancy was under 30%, and the community generated nearly $900,000 in revenues. Its private equity group seller with a regional seniors housing portfolio looked to divest the community. The buyer partnered with a local operator to take over management of the community. Matthew Alley and Jeff Binder of Senior Living Investment Brokerage handled the transaction.
Alley and Binder were then joined by Nick Cacciabando to sell the 79-unit AL/MC community in Oklahoma City, Oklahoma. Built in 1998 and renovated in 2015, the community is licensed for 133 beds. SLIB actually sold the community to the current seller in 2015. It was underperforming in 2015 and in 2022, as well. At 68% occupancy (based on units), the community lost almost $1 million on $2.37 million of revenues.
The private family office seller is in the process of exiting the seniors housing space. To help turn around operations, the buyer will invest in immediate capital improvements, but the purchase price was not disclosed.
