AdCare Health Systems, Inc. recently signed a definitive purchase agreement for a privately-held assisted living facility in Hoover, Alabama for $5.0 million. The Ohio-based long-term care, home care and management company stated that the 105-unit facility is currently occupied at 59%. The facility, located near Birmingham, was purchased from a bank. AdCare expects to close the transaction in the next 45-60 days.
"This is the third facility we have agreed to acquire in the last few weeks, and one of several potential acquisitions in our pipeline," said Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer. "We have secured financing to purchase this facility, and when occupancy improves under our more capable management, we expect this acquisition to be very profitable for AdCare."
"We plan to take further advantage of foreclosures and poorly run facilities, which we can purchase below market prices, and target acquisitions of both profitable and turnaround properties to grow our company," said Brogdon.