Senior Living Investment Brokerage recently announced the sale of a senior living facility for $8.5 million in Chattanooga, Tennessee and a separate transaction for an Indiana senior living facility for $8 million. The Chattanooga sale was for a five story building consists of 42 Independent Living units, 59 Assisted Living units, and 15 Memory Care units. Constructed in 1985, with renovations completed in 2004, the facility is comprised of approximately 109,500 square feet and sits on 12.36 acres.
The Seller, a national owner / operator of seniors housing, sold this asset to utilize the capital for other corporate purposes. The Buyer is a Florida based real estate investment company who will keep the existing management in place. At the time of the sale, occupancy was 97%. The facility sold for $8.5 million, or approximately $73,275 per unit.
“Our client put forth a specific scenario to satisfy several corporate needs, including extracting needed capital while maintaining the management fee income governed at this property. Our vast network provided multiple options, and ultimately, their goals were achieved,” stated Jeff Binder.
The sale of Wyndmoor was to Magnolia Health Systems out of Indiana with over 25 facilities across the state. The previously appointer receiver, Magnolia, ultimately ended up purchasing the facility and utilizing the current lender for financing. Current rents range between $2,000 – $3,195 and average $2,400. Magnolia intends to reposition the asset to cater to more assisted living and Medicaid Waiver residents and see the profitability through to stabilization
"This is a great acquisition for Magnolia and will diversify the company to add assisted living to a primarily skilled nursing company. The Wyndmoor should flourish under local, Indiana management." Ryan Saul, Managing Director of Senior Living Investment Brokerage, Inc.