The Knapp-Stahler Seniors Housing Group of Marcus & Millichap announced a couple of seniors housing sales, led by Jim and Justin Knapp. Jim first sold a CCRC in Waterville, Maine for $10.2 million, or $69,400 per bed. Located on an entire city block, the campus includes a 111-bed skilled nursing facility plus 27 assisted living/memory care beds and nine independent living units. It was originally built in 1922 and renovated in 1970 and 1995. Five years ago, it was acquired by a regional not-for-profit. Occupancy has consistently been above 90% for all levels of care, and revenues were just below $13.8 million, so the unidentified new owner is coming into a strong operation. They used conventional debt to finance the deal, which closed at the start of July.
Next, Justin Knapp sold a 48-unit, 62-bed assisted living/memory care community in central Tennessee. Set on more than 12 acres, the community was built in 2009 and consists of private rooms with full bathrooms plus additional bed licenses that can be utilized for companion suites. Community features include an outdoor koi pond and sitting area, a hair salon, common areas, and resident transportation. It maintained strong occupancy throughout the pandemic and eventually sold for $6.5 million, or $135,400 per unit, with a below-market cap rate. Its current occupancy lies in the mid-to-high 90s.
An operator initially intended to purchase the community, but ultimately a national REIT acquired it while the operator intstead chose to manage it. According to Mr. Knapp, the deal moved rather quickly, with the property being on the market for four to six weeks before a letter of intent was signed. The community’s most recent year-end revenue was north of $2.25 million, and Mr. Knapp noted the expense structure under the previous owner was high.
