Looking to expand their portfolio of supportive living facilities (SLFs) in Illinois, a private owner bought four SLFs (three in the Chicago area and one in Rockford) with 539 total beds for $49 million, or $90,900 per bed, with a 9.4% cap rate. Occupancy ranged 54% at one facility to 93% at another, with the average settling at 75%. And all of the facilities were built in the mid-2000s with an average of 67,000 square feet. Operationally, they were running well (at a 31% margin on $14.7 million of revenues), but the private owner seller wanted to exit the business. Ryan Saul and Patrick Burke of Senior Living Investment Brokerage handled the transaction.
