assisted living community – Page 3

Senior Living investment Brokerage Sells Assisted Living Community

September 25, 2015/in assisted living, assisted living community, exclusive listing, Jeff Binder, memory care, prepare to sell assisted living, sell memory care, Senior Living Investment Brokerage, Toby Siefert/by ryanmsaul

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 [email protected] or Jeff Binder at [email protected]

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What is the optimum and/or minimum size for a Seniors Housing Community sale?

September 18, 2015/in assisted living, assisted living community, assisted living sale, Capitalization Rate, independent living, independent living facility, internal rate of return, Jason Punzel, prepare to sell assisted living, sell retirement community, sell seniors housing, what is my property worth/by ryanmsaul

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 [email protected] or 630-858-2501 x 233.

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When is the best time to list a seniors housing or nursing home community?

September 17, 2015/in Alzheimer, Alzheimer's, assisted living, assisted living community, assisted living price, assisted living sale, buy assisted living, buy nursing home, cap rate, Capitalization Rate, CCRC, closing costs, confidentiality, development, due diligence, exclusive listing, independent living, independent living facility, Lesley Arlasky, long term care, market, Matthew Alley, new construction, not-for-profit seniors housing, nursing home, nursing home price, operating margin, prepare to sell assisted living, prepare to sell nursing home, private equity, proposal, residential care facility, sales process, sell assisted living, sell CCRC, sell long term care, sell memory care, sell nursing home, sell portfolio, sell retirement community, sell seniors housing, sell skilled nursing, sell to REIT, senior housing, senior housing brokerage, Senior Housing community, senior housing sales, senior living, Senior Living Investment Brokerage, seniors housing, seniors housing brokerage, Skilled Nursing Facility, SLIB, Texas, valuation, what is my assisting living worth, what is my nursing home worth/by ryanmsaul

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 protected].

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How to Sell Assisted Living Facilities Faster (part 2 of 2)

August 3, 2015/in assisted living, assisted living community, Capitalization Rate, due diligence, independent living, independent living facility, Jason Punzel, prepare to sell assisted living, prepare to sell nursing home, sell assisted living, sell nursing home, senior housing brokerage, Survey, Title Report, what is my property worth/by ryanmsaul

Deciding when to sell your assisted living facility (Independent Living Community or skilled nursing facility) can be a daunting task and there are many factors to consider. However, once an owner decides to sell, typically they want to close as quick as possible. As a company, Senior Living Investment Brokerage, Inc has sold more senior living and skilled nursing facilities than any other brokerage company over the past seven years. Over the years, we have found a number of things an owner can do to help sell their senior housing community faster, below is the second half of our top six things to do to sell your facility faster:

4. Have your attorney get a preliminary title report when you list the property – After an offer has been accepted and the buyer is going through their due diligence period, title issues can often cause delays in closing. If a property has been owned for a long time, and no recent debt has been placed on the property, the title probably has not been reviewed by an attorney for years. Old liens, mortgages, improper zoning are just a few issues that could come up. By having an attorney review a title policy early on in the process, many of these issues can be resolved prior to the buyer’s attorney examining the title policy.

5. Have an ALTA survey completed ahead of time – An Alta survey, in conjunction with an attorney review of the title policy can help reduce possible delays in closing. A survey can reveal encroachments, easements and other issues on the site that a buyer may or may not have an issue with. Having a survey that is already completed that a seller can show to a potential buyer will save time and make the closing process go smoother.

6. Fix any major capital items – All buyer’s will perform some type of building inspection and expect that the roof, foundation, mechanicals, etc are in good working order. As a seller, if you know there is something that needs to be fixed, it makes sense to do it ahead of time and not wait and hope a buyer won’t find it.

Many of the above suggestions will cost the seller both time and money ahead of time. The seller must weigh the risk of spending their time and money with helping the closing go quicker. Ultimately, if the seller is committed to selling, these expenses will be a good investment to ensure the smoothest closing possible.

For more information on selling your seniors housing property, please contact Jason Punzel at 630-858-2501 x 233 or [email protected].

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Ryan M Saul