IPA Sells “A” Property in California
High-quality “A” level assisted living communities may have taken a back seat to the “B” properties in the 2018 M&A market, according to new statistics in our soon-to-be-published Seniors Housing Acquisition and Investment Report, but the team at IPA Seniors Housing (a division of Marcus & Millichap) sold one in a Sacramento, California suburb. Opened in September 2015, it was previously owned by a family company based in the Northwest. Its 85 assisted living and 32 memory care units were occupied in the mid-90s, and the community produces strong cash flow. An owner/operator with a strong presence on the West Coast that was looking to add high-end assets to its portfolio ended up... Read More »
Giannini Gets It Done in Wisconsin
Ray Giannini of Marcus & Millichap sold a senior care campus in Wisconsin for $14 million, or about $80,500 per bed. Located on the Illinois border in Beloit, the property features 120 skilled nursing and 54 assisted living beds. The SNF was well occupied but with a high Medicaid census, while the assisted living was all private pay. It benefits from a good local reputation and its proximity to retail shopping areas. The new owner was not disclosed. Read More »
A Sign To Come?
Here’s something we may be hearing more of next year. Increased competition, lowered census and staffing issues prompted one owner of an assisted living/personal care community in Southwest Pennsylvania to retire early from the business. Built in 1965 and renovated in 1997, the 58-unit community had a history of strong profits and high occupancy until 2015 when the aforementioned trifecta of issues hit the business. Working on behalf of the seller, Joe and Jim Knapp of Marcus & Millichap’s Knapp Group and Robert Villeneuve of M&M’s Washington, D.C. office found a buyer with experience in value-add projects in western Pennsylvania. They paid $3.6 million, or $62,000 per unit, in... Read More »
New York Investment Fund Wins Bid For Knoxville Property
In late November, the team of Mike Surak, Joshua Jandris and Mark Myers of Institutional Property Advisors, a division of Marcus & Millichap, closed on the sale of a 69-unit assisted living and memory care community in Knoxville, Tennessee. The community opened in early 2017 with 54,000 square feet on 6.91 acres. Of the total, 51 units are assisted living and 18 are memory care. Occupancy had reached 90% by closing, and was forecasted to reach 95%. The IPA team obtained five offers, and the winning bid was $16.8 million from an upstate New York investment fund. This came to just over $243,000 per unit, and a 6.6% cap rate on annualized EBITDA. Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
