A portfolio of ALP (Assisted Living Program) communities sold in upstate New York, with Dave Balow of Senior Living Investment Brokerage handling the transaction. ALP properties serve those who are medically eligible for nursing home placement (and mostly are Medicaid recipients) but provide care for them in a less medically intensive, lower cost setting more similar to an assisted living community. So the state saves on the higher cost of a nursing home, and the provider earns a higher rate than a typical assisted living community. Win-win.
The New York-based seller owns and operates assisted living communities in the downstate region, and divested all of its ALP assets in the upstate market through this transaction to focus on its core geography. A private real estate investor partnered with an experienced New York ALP operator to acquire the portfolio.
The portfolio features seven ALP communities, 230 units and 333 beds (292 ALP and 41 adult home beds). Built from the early 1900s through 1988, the communities total 126,151 square feet and 28.27 acres. As they are a cross between skilled nursing and assisted living, these communities typically sell for a cap rate between the two sectors, between 10.5% and 11.0%.
