They just couldn’t get away for long. After exiting the seniors housing space earlier this year, an Alabama-based family owner/operator got back in the game with the purchase of an independent/assisted living community in the state. Brooks Blackmon of Blueprint Healthcare Real Estate Advisors facilitated both their exit (with help from Ben Firestone) and reentry. Mr. Blackmon closed the deal less than three months from the time Blueprint was engaged.
The target was built as an assisted living community in 1997 but added independent living units in 1999. In addition, excess land intended for future development or another IL expansion was included in the sale. Given the general strength of the IL market, an expansion wouldn’t be surprising. But also, as was mentioned in our recent webinar “Assisted Living: Acquiring and Selling in Today’s Turbulent Market,” offering a continuum of care may be the best strategy to attract and keep new residents. So, maybe a memory care wing? The community, however, is around 99% occupied with stable cash flow, so there is no pressing need for that. The seller is a long-time owner/operator within Alabama looking to sell one of its legacy assets.
Using the proceeds from its earlier sale of 10 communities located in Alabama (8), Mississippi and Tennessee, the buyer executed a 1031 exchange to purchase the community, for an undisclosed price. Given the buyer’s previous footprint, one community may not be enough for them, so further expansion in the Southeast is likely in store.
