Ryan Saul, Brad Clousing and Jeff Binder teamed up to sell a portfolio of 5 seniors housing communities. Four in South Carolina and one in Florida. The total portfolio included 282 assisted living units and average occupancy is 94%. Given the strong occupancy, there appears to be an opportunity to increase rents and further enhance margins and cash flow. The Buyer was a national REIT. This was a strategic acquisition that brought quality, cash flowing opportunities to markets where they have existing operations/holdings. The Seller, decided to sell to exit seniors housing and focus on rehab, LTACH and CCRC’s. In addition, Senior Living Investment Brokerage, Inc. sold 6 additional assets for the Seller which we will report on in a later blog. This portion of the portfolio sold at a 7.52% cap rate. for additional information, please contact Ryan Saul firstname.lastname@example.org, Brad Clousing email@example.com or Jeff Binder firstname.lastname@example.org
Assisted Living Facility Sale
Senior Living Sells Assisted Living Facility. Matt Alley recently facilitated an Assisted Living Facility sale located in Texas. The asset, located 60 miles southwest of Dallas, is approximately 25,780 square feet and is on 4.14 acres of land. It was built in 1999 and census at the time of sale was 93%.
The Assisted Living Facility Sale was $4,150,000 and the Buyer reimbursed the Seller for the prepayment penalty on its HUD loan.
Senior Living Investment Brokerage, Inc. Seller Representation
The Seller is an independent owner/operator exiting the seniors housing business. The Buyer is a regional owner/operator based in East Texas.
Contact Matthew Alley
For additional information on this Assisted Living Facility Sale or for a valuation on your seniors housing property, please contact Matt at 630/858-2501 or email@example.com or www.matthewdalley.com.
Bradley Clousing and Ryan Saul sold a 64 Unit Assisted Living and Memory Care Community located in southwest Florida. The property has 48 units designated assisted living and 16 units for memory care. Built in 1983, it was extensively renovated in 2005/2006. The community boasts stabilized occupancy of over 95% and approximately 40% of the residents utilize managed care for funding. The Seller was a Virginia based private investor and the Buyer is a large capital goup and it will be operated on their behalf by a Florida based operator. The 43,428 square fot building sold for $7,450,000. For additional information on how Senior Living Investment Brokerage, Inc. can assist you, please contact Ryan Saul at firstname.lastname@example.org or Brad Clousing at email@example.com
Toby Siefert and Jeff Binder sold a 47 Unit Assisted Living and Memory Care Community that included 2 cottages (3 units each) on 6 acres in Virginia. With 84 total beds, the monthly market rates ranged from $4,050-$5,100 per bed/month. It was sold by a private owner who decided to exit the seniors housing business. The Buyer is a private REIT based on the West Coast who partnered with a national operator. Located 75 miles outside Washington D.C., the community offered an affordable alternative and allows for higher acuity due to I-2 construction. The purchase price was $14,300,000 or $270,000 per unit. The census was 91%. For additional information, please contact Toby Siefert at firstname.lastname@example.org or Jeff Binder at email@example.com
Brad Clousing has sold a 120 Bed Skilled Nursing Facility in Jacksonville, FL for a local non-profit organization. This was the only skilled nursing asset owned and operated by the Archdiocese of St. Augustine. The facility, built 1992 and in good condition, was at 87% census with only 6% Medicare census. The Buyer is a Florida based owner/operator and this is their 10th location in Florida. The purchase price was $11,000,000. Senior Living Investment Brokerage was able to procure multiple offers on the property. For additional information, please contact Brad Clousing at firstname.lastname@example.org or 630/858-2501
Senior Living Investment Brokerage, Inc. will be represented by our entire team at the National Investment Conference and the American Senior Housing Association September 29th to October 2nd in Washington D.C. If you are attending and would like to meet with one of our representatives, please contact them directly or contact Grant Kief at email@example.com or 630/858-2501.
When considering a sale, there is no minimum size for an assisted living facility (or independent living facility). Different room counts will attract different types of buyers. A REIT or large private equity company will not have an interest in a single, 16 unit assisted living facility. Likewise, a local nurse typically will not have the financial ability to buy a 100 unit assisted living facility.
As a company, we have found that most larger Buyers have a minimum threshold of 40 units for an assisted or independent living facility, with a preference of over 60 units. However, there are exceptions to every rule. If there are multiple smaller facilities (15-25) units on the same parcel, or nearby, often times larger Buyers are still interested. We have also had a lot of success selling smaller communities (25-30+ units) that are in favorable locations in larger cities, newer, and specialize in higher end private pay residents who prefer a smaller setting. Recently, we closed on a newer 25 unit assisted living community in the Portland area that sold for over $220,000/unit. It was 100% private pay with high occupancy and excellent quality finishes. Since there are so many variables that factor into a purchase decision by any Buyer, it is important to work with an expert in valuing and selling a senior living community to ensure the optimal pricing and terms.
For more information on what your senior living community could be worth, please contact Jason Punzel at firstname.lastname@example.org or 630-858-2501 x 233.
I’m often asked when is the best time of year to list a seniors housing or nursing home asset? We are all used to residential real estate agents telling us to list in the Spring while the weather is starting to change (at least for us Northerners).
Does it matter for seniors housing communities?
Yes and no. While there is not the seasonality in the seniors housing market as there is in the residential market, there are good and less optimal times for getting buyers’ (even institutional buyers’) attention.
I would argue that we are entering into one of those sweet spots as we get into the middle of September. Typically, Senior Living Investment Brokerage, Inc. has its highest volume of listings in September and early October.
Why is that?
During the Labor Day / beginning of October time frame, Buyers have made it through the Summer and are looking to deploy capital before the end of the year. They are hoping to make one last push to meet their aggressive beginning of the year expansion goals.
With a typical 3-4 month closing period, now is as good of a time as any to consider listing your property with Senior Living Investment Brokerage, Inc. We can help you procure the right Buyer, who can close the transaction prior to year-end. Many Buyers are looking to “get money out the door” by December 31st and this may give you an advantage in coercing those groups into making a more aggressive bid than they would in the middle of the year.
If you have any questions on the topic of this post or would like a confidential valuation of part or all of your seniors housing portfolio, please contact Matthew Alley at 630-858-2501 ext. 225 or email@example.com.
There aren’t many private nursing home portfolios left. Private and public REITs have been buying up available portfolios as fast as they come to market. In addition, these financial buyers have been strategically targeting quality portfolios that may not have even thought about selling. In the news today, another nursing home portfolio sells in this torrid market.
Case and point, Griffin American Healthcare REIT III, Inc. announced today that they will acquire the Trilogy Health Services nursing home portfolio for $1.125 billion. This is a blockbuster acquisition at a time that big portfolios and big announcements have been scarce.
The Trilogy Health Services portfolio consists of high quality, high Medicare facilities that are the market leaders in their respective communities. The portfolio totals 96 communities in Kentucky, Indiana, Ohio and Michigan.
To read more, click here: Sale Details
Now is an ideal time to explore the sale of your community or portfolio. Please contact Ryan Saul at Senior Living Investment Brokerage for a confidential proposal that will help determine market value.