February 21, 2018, Steve Monroe, Senior Care Investor - Despite having a nearly two-thirds Medicaid census, an assisted living community in Bellingham, Washington still maintained a healthy profit margin and sold to a California-based private equity firm. Built 40 years ago, the 66-unit community features mostly studio units, with 10 one-bedroom units, and was 93% occupied.
Private pay residents only made up 30% of the total census, and yet, the community posted a 27% EBITDAR margin on approximately $2.22 million of revenues.
That’s impressive from the previous independent owner/operator, who sold the community for $7.025 million, or about $106,400 per unit, with an 8.5% cap rate. There is still room for improvement for the incoming private equity owner, especially if they get that private pay census up.
Evans Senior Investments handled the transaction.