A Missouri senior living portfolio recently sold for $22.5 million at an 11.3% cap rate, with Evans Senior Investments representing the seller.
The Victorian Manors portfolio has ten facilities on eight campuses with a total of 448 units. Eight buildings are residential care facilities, and the remaining two are memory care facilities licensed as assisted living. All the properties are located within 70 miles of each other and were built in the last 10 years.
The price per unit and cap rate are conservative, says the ESI team, because of portfolio characteristics such as very small facilities that are between 20 and 40 units, Jack & Jill rooms, and extremely rural locations.
The previous owner was also operating the facilities on a “lean” staffing model, which under new ownership will be increased to better meet industry standards.
The seller was a local developer who built and operated each facility, while the buyer was a large regional owner/operator that owns several facilities in Missouri, Tennessee, Mississippi, Illinois, and Kansas.
Written by Alyssa Gerace