Improving senior care facility sells
With a stable occupancy and rising Medicare revenues, a 94-bed skilled nursing and memory care facility in Lawrenceburg, Indiana represented a good opportunity for a local undisclosed buyer to both cash in on the 19% operating margin, and improve it. Originally built in 1984 with 35 semi-private and 12 private units, the facility provides a wide array of services, including physical therapy, nursing complex care, dementia care and social services. In 2010, it underwent a $395,000 renovation mainly to the private-room wing in order to attract Medicare rehab patients. Thanks in part to the facility’s relationship with the local hospital (which had 1,779 Medicare patients with a mean length... Read More »High-priced transaction in Minnesota
A non-traded REIT recently bought a 105-unit senior living community in Maplewood, Minnesota for $30 million, or $285,700 per unit, with a 6.3% cap rate. Located in the Twin Cities area, the community features 22 independent living units, 51 assisted living units and 32 memory care units. It is relatively new (built in 2011 by developers experienced in seniors housing) and operates at a 37% margin on $5.15 million of revenues, based on the estimated 2015 budget. Not only that, the community has improved dramatically since the beginning of 2014, raising occupancy from around 69% to 92% by earlier this year, and EBITDA from just under $200,000 in 2014 to $1.9 million in the estimated 2015... Read More »Agapé Senior Living portfolio sells for $154 million
In one of the largest US seniors housing sales so far in 2015 (sixth-largest, to be exact), a private equity firm bought the independently operated South Carolina Agapé Senior Living portfolio, representing 10 communities with 856 units of seniors housing and three facilities of 294 skilled nursing beds. Agapé grew the portfolio organically through internal growth and acquisitions, with all the properties relatively young and large in size. In fact, the oldest building was built in 1990 (a SNF), and the smallest was a 58-unit AL/MC community. The final purchase price was $153.9 million, or $156,400 per unit for the AL/MC units and $68,000 per bed for the skilled nursing, with a 9.9% cap... Read More »ALF with upside sells
A 60-unit assisted living community in Columbus, Georgia that was not fulfilling its revenue potential sold to a private investment group for $4.85 million, or $80,800 per unit. Built and owned by the not-for-profit St. Francis Hospital since 1999, the community had historically struggled with occupancy, until in 2006, it leased a wing of 14 units on the second floor to VistaCare, Inc., an unaffiliated hospice company. That move helped bring occupancy up to 97%, but at the same time it was tough to turn a profit, with an average rent received from VistaCare of $2,150 per unit per month based on a base rent plus a PPD reimbursement. At the time of the sale, the community was operating at... Read More »Schedule a demo
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