Senior Care Real Estate Buyers

by The Real Estate Buyers


Healthcare Acquisition Target 1

Stabilized Senior Care Facility Investment/Acquisitions Criteria is, but not limited to, the following:

  • Assisted Living (AL) and/or Memory Care (MC) facilities with a solid census (no lease-ups).
  • Property financials must show an annual Net Operating Income of $2 Million EBITDAM (earnings before interest, income taxes, depreciation, amortization, and management fees).
  • Sales price to be negotiated between Buyer and Seller, taking into consideration facility(s) financial reports (three years of annual reports plus trailing 12 months), the physical condition of the property at time of contract, as well as current appraised value.

Purchase criteria is, but not limited to, the following:

  • Buyer to purchase 60% ownership of negotiated sales price/appraised value of facility(s).
  • Seller to retain 40% ownership of negotiated sales price/appraised value of facility(s).
  • Close of Escrow to occur after a due-diligence period of 90-days or less.
  • Current Management can remain or walk away.
  • Seller to agree that after a reasonable holding time (+/- 7 years after the initial sale), facility(s) to be bundled with Buyer/Investor’s overall portfolio and offered for institutional re-sale.

Private Senior Care Real Estate Buyers

Of the $1.2 billion of closed deals in the first quarter of 2022, private buyers represented $877 million, or 76%, of the closed volume, according to data released at a recent webinar hosted by NIC MAP.

The volume of transactions closed by private buyers — defined as any company that is not publicly traded, such as a private real estate investment trust or single owner or partnership — has risen significantly since last year, the data show. Private buyers represented 43% of closed volume in all of 2021; public buyers (publicly traded companies), 35%. 

Locations:Throughout the US, with an emphasis in Western, Midwestern, and Southeastern states.
Property Use:Suitable for operation of a Senior Living & Care Facility, which offer either or all of the following: Independent Living, Assisted Living, and Memory Care.
Stabilized Properties:Those offering competitive advantages, strong real estate fundamentals, operational efficiencies, and prices commensurate with the local market and the quality of the asset.Price Range: $5,000,000 to $15,000,000
Value Add / Opportunistic Properties:Those having some form of value-add / opportunistic potential (e.g. expansion, renovation, lease-up, re-purposing from an existing alternative use, operational enhancement, financial restructuring, etc.)Price Range: $15,000,000 to $35,000,000, inclusive of purchase price and costs required for construction / value enhancement.
Unit Counts:60 units or greater
Demographics:Primary Market Areas (within a 5 mile radius) that demonstrate high concentrations and positive growth trends generally consisting of:
Income Qualified Seniors (seniors 75+ years old with Median HH Income exceeding $35,000)Income Qualified Adult Children (adults between 45 to 65 years old with Median HH Income exceeding $75,000)Median Owned Housing Values exceeding National and State medians
Local Supply & Demand:An appropriate balance between competitive supply of existing/planned projects, and qualified demand within the PMA, indicating favorable Penetration Rates.
Proximity To:Hospitals / major medical facilities within five miles.Retail shopping and other services within two miles. Convenient access to public transportation. An adequate supply of labor force
Purchase Types:Single Assets, Portfolios, JV Opportunities

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