41 Unit Assisted Living Community in Central Minnesota

MN

Assisted Living for Sale, North Minnesota
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Asking Price: $7,200,000

Cash Flow: N/A

Gross Revenue: $1,670,000

EBITDA: $630,000

FF&E: N/A

Inventory: N/A

Real Estate: N/A

Established: 2016

41 Unit Assisted Living Community in Central Minnesota

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Business Description

41 Unit Assisted Living Community in Central Minnesota

VR Business Brokers, Mergers and Acquisitions is pleased to introduce a 41 unit 50 resident capacity, Comprehensive Home Care Licensed Assisted Living Facility Minnesota. This rebuilt project in Central Minnesota region with a strong healthcare infrastructure is less than 3 years old and it is projected to stabilize in early 2020.

For a future operator, the facility’s best and highest use based on the licensing capacity is 66. The value up opportunity presents approximately $5 Million when reaching the capacity with the assumptions of 10% vacancy and 5% management services and fees included.

The facility is owner operated and there is no management contract obligation. However, the owner is willing to assist with transition and the broker can assist with a management contract.

Detailed Information

Real Estate:
Owned
Included in asking price
Building SF:
36,000
Competition:
According to ESRI, the United States 75-plus population is estimated to grow by 19.8% over the next five years. If only a portion of this figure translates to actual prospective residents with a viable income stream, the Senior Housing industry is facing a severe shortage of inventory. 40% of the existing Senior Housing inventory is over 18 years of age with 53% already over the age of 25 years. Of the existing AL inventory, 50% is over 18 years old. From a layout, design, building codes, supportive science and aesthetic standpoint, the standard of Senior Housing products required to care for our aging population has changed tremendously from five years ago, let alone the strides made in the last two decades. Minnesota ranks as 7th state as “Senior Housing Top 10 Metros with construction activities.” Inventory growth in 2018 remains consistent and stabilized occupancy overall remains consistently high, hovering 90%. Historical value per unit pricing during 2017-2018 is $150K to $200K for AL. Source: The Senior Housing Acquisition and Investment Report, 2019. NIC MAP Data & Analysis Service Q4 2018 Summary.
Growth & Expansion:
The community has the capacity to accommodate 66 Resident occupancy. The national study shows the increase in market demands with baby boomers starting to age and turning 75 in 2021. For a future operator, with the assumptions of 10% vacancy and 5% management fees, the facility is projected to gross $2.9M and produce approximate NOI of $1M. There is upside of approximate $5M valuation for a future operator under the assumptions of similar market and economic conditions.
Reason for Selling:
Personal Reasons
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Young Bebus

Business Listed By:
Young Bebus

VR Business Brokers | Mergers and Acquisition

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