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 punzel@slibinc.com or 630-858-2501 x 233.
