An Oregon-based senior living operator is leaning into the COVID crisis by acquiring a 29-unit memory care community in Portland and temporarily converting it to a COVID recovery facility for the state. We imagine the rates for taking care of COVID patients are much higher than traditional SNF Medicare rates, so it could be a very profitable operation.
Originally built in 1999 and remodeled in 2013, the community features 55 beds in the 29 units. It is located in a high traffic corridor of Portland and had historically enjoyed high occupancy. But census recently dropped to 71%. Cash flow was also dropping from around $580,000 from January to June 2020 (annualized) on over $3.22 million of revenues.
The seller was a regional owner/operator that will be exiting the industry. They hired Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage to handle the transaction. There was no movement in the final purchase price, which came to $6.25 million, or $215,500 per unit.
