The deals keep on coming from Senior Living Investment Brokerage. Jeff Binder and Ryan Saul first announced the sale of a supportive living facility in Jacksonville, Illinois on behalf of a regional owner/operator who was looking to retire from the industry. Built in 2004, the community features 86 units, including studio, one-bedroom and two-bedroom options. At the time of marketing, an application was submitted to the state for certification in the SLP Dementia Care Program, which was approved during the closing process, allowing the new owner to add 10 memory care units in a part of the building that was purpose-built for them.
Occupancy was 90% at the time of the sale, but there is not much room for rent growth. That is because of an existing land use restriction that requires the community to have 66 of its 86 units reserved for low-income residents. The tax-credits actually burned off in 2019, but the obligation runs through 2033. It’s a good thing the new owner is experienced in both supportive living and in affordable housing communities and owns other facilities across Illinois. They paid $9 million, or $104,650 per unit, at a 7.1% cap rate.
Then, Toby Siefert and Bradley Clousing teamed up to represent MaineGeneral Health, the third-largest health system in the state of Maine, to sell their 130-unit CCRC in the town of Hallowell (Augusta MSA). Prior to the sale, the health system’s Board had voted to exit the seniors housing business in order to focus on its other core services.
That’s where Messrs. Siefert and Clousing came in, selling the property to Northbridge Companies, a regional owner/operator with a strong presence in northern New England. Built in 2000, the 46 independent living cottages and 60 IL apartments were strictly entrance fee and between 80-90% refundable at resale. A significant amount of entrance fee liability was included in the purchase. The 24 assisted living and memory care units, added in 2006, were strictly rental. Altogether, occupancy was at 98%. In the end, the community sold at close to a market cap rate for CCRCs, making it a solid deal for SLIB.
