Senior Living Investment Brokerage continued its May hot streak with two more closings. First, the firm represented a local hospital that was looking to divest its 55-unit assisted living/memory care community in McAlester, Oklahoma, in the rural eastern part of the state. The community was built in 2017 but lagged behind operationally for years. Occupancy was healthy at 91%, but it operated below a 10% margin on $3.1 million of revenues. It could stand to benefit from a more experienced and seniors housing-focused manager to push rates, control expenses and support its staff.
An Arkansas-based partnership that has an operating presence in Arkansas and eastern Oklahoma emerged as the buyer, paying $4.4 million, or $80,000 per unit. Jeff Binder, Dan Geraghty and Nick Cacciabando handled the transaction.
SLIB also facilitated the sale of a stand-alone memory care community in Redlands, California. Built in 2013, Blossom Grove features 46 units with 66 beds and was 81% occupied. The community sits on 2.8 acres and comprises 32,582 square feet.
An investment management firm with a focus on alternative assets including seniors housing chose to sell the asset to a REIT that will be leasing the community to a regional operator. The operator has several other communities in the area, which will create strong synergies. Binder and Jason Punzel handled the transaction.
