Two assisted living communities in New York with licenses designed to provide higher level care in an AL setting, rather than in a skilled nursing facility, sold with the help of Dave Balow of Senior Living Investment Brokerage. Balow was brought on by a private owner to facilitate the sale (and their exit from seniors housing ownership in order to focus on other ventures within the industry).
The two communities, The Cambridge Assisted Living and The Mansion at South Union, are located within a mile of each other in Cambridge, New York. The Cambridge has an enhanced care license, which is all private pay, while The Mansion is an ALP community (Assisted Living Program), which is a Medicaid-funded program. Together, they offer a total of 94 beds in 74 units across 47,035 square feet on 8.5 acres. The Cambridge was originally built in 1885 and renovated in 2015, and The Mansion was constructed in 1900 and remodeled in the 1950s, before being updated again in 2019. Due to limited competition, both have high occupancy rates, around 95%. Combined revenues for the communities were approximately $3.6 million, with an EBITDAR of around $1.1 million, for a healthy margin around 31%.
Several offers were received for the communities, and the selected buyer was a Northeast-based private real estate investment firm with comparable assets throughout upstate New York. They paid $10 million, or $135,000 per unit, for a cap rate around 11.2%.
