Jeff Binder Sells Oregon Assisted Living Community

Jeff Binder was engaged to sell a 53 unit  Assisted Living facility in northwest Oregon.  The building consisted of 41 studio units and 12 one-bedroom units.  Constructed in 1999, the attractive two-story building sits on 2.15 acres.  The community has a strong operating history, including several years at, or near, full capacity, and an excellent reputation in the market.  At the time of the sale, census was near 93%.  The building is a participant in the Medicaid program and the Medicaid census at the time of sale was 50%.  The transaction closed at a 9.3% capitalization rate/$128,302 per unit.  The Buyer assumed debt issued by the Oregon Housing and Community Services Department that carried unfavorable terms but certain penalties associated with the debt prevented pre-payment.  The Seller is based in Oregon and divested the asset to exit the seniors housing sector and plans on using the proceeds on a more passive investment.  A national seniors housing operator managed the facility for the Seller and will remain under a new third-party management agreement.  The stable financial history, solid reputation and quality location just outside of Portland, helped secure multiple offers.  The Buyer is a national owner with plans to increase their operating presence in Oregon.  For additional information, please contact Jeff binder at 314/961-0070 or binder@slibinc.com