A not-for-profit assisted living/memory care community in Bartlett, Tennessee (Memphis MSA) has gone private, after being acquired by a joint venture between a regional operator and a private real estate investment company. Built in 1989, the community is comprised of five 24-unit residential buildings along with an administrative building. An obstacle for the new operator is that the kitchen is located in the admin building, with warming stations in each resident building.
Operations could also be improved, as the margin is currently 9.5% on approximately $4.29 million of revenues, and occupancy is just 83%. But since this was its only community in Tennessee, the Connecticut-based not-for-profit owner decided to sell, at a price of $10 million, or $83,333 per unit. The buyer believes it can improve on both profit margin and census, after it invests in updates to the property. Ryan Saul and Patrick Burke of Senior Living Investment Brokerage handled the transaction.
