Whether it is increased complexity, falling margins, staffing problems or just fatigue from dealing with the last two years, senior care owners hit the exits in droves in 2021. Plenty had already planned to get out before the pandemic ever struck, and this was just the last straw, but there are still many waiting to leave until values rise again, or federal and state aid ends. So, we can expect smaller owners and mom & pops to continue seeking exits in 2022.
Ending their 2021, Jason Punzel, Vince Viverito and Brad Goodsell of Senior Living Investment Brokerage have spent the last 12 months helping a Portland, Oregon-based group exit the seniors housing industry, wrapping up the divestments with the sale of a 36-unit memory care community in Garden City, Idaho (Boise/Nampa area). Previously, the SLIB trio had also sold a community in Portland in December 2020 and one in Southern California in June 2021.
The Garden City community was built in 2002 and 2017, with 45 beds in 36 rooms. Prior to the pandemic, it boasted strong occupancy and EBITDA. But several outbreaks and lockdowns caused census to drop to the 50s and cash flow to turn negative on a little more than $2.0 million of annualized revenues. A regional owner/operator beat multiple competitive offers, paying $4.15 million, or $115,300 per unit, for the community. They will hope to bring occupancy back to a stabilized level in the next 12 months.
