Ryan Saul of Senior Living Investment Brokerage handled the sale of a 32-unit assisted living
and memory care community located in Westfield, Wisconsin, which is 50 miles north of
Madison. The community sits on 3.1 acres and consists of 22 assisted living units and 10
memory care units.
The sales price was $2.8 million, or $87,500 per unit, and came with a cap rate of 9.9% based on
trailing six months ending May 2021 annualized. Occupancy was only 65%, which is up from its
pandemic low of 50%. The seller was a local mom and pop operator and getting out of
the business with this sale. Census dropped temporarily on news of the upcoming sale.
Harris Villa Assisted Living was built in 2006 and 2011 and has a total of 18,264 square feet.
The AL units average 310 to 390 square feet, while the memory care units are larger at 700 to
780 square feet. The AL units had a slightly higher occupancy level than the MC units. Average
rates were between $3,500 and $4,000 per month.
Annualized revenues ending May 2021 were $1.3 million with EBITDA of $277,000. The buyer,
a regional company with communities in the Midwest, plans to modernize systems, increase
occupancy and improve margins and overall cash flow. The first step, of course, is filling those
empty units.
