Company Overview
American HealthCare Capital is pleased to introduce a 149-bed Assisted Living, Independent Living, and Memory Care Facility for sale based in Mojave County, Arizona. There are 126 Assisted Living and Independent Living studio units, of which 28 have adjoining doors to enable 14 one-bedroom units. The facility is licensed for 119 Assisted Living beds and 38 Memory Care beds (19 Units). The facility had undergone extensive Cap X improvements, including new windows, a new boiler, and a newly completed solar installation that will provide a cap on future energy costs.
Financial Overview
Annual gross revenues averaged $3.2 million between 2017 and 2020 and were growing until the census was impacted by the pandemic. Occupancy dropped by more than 30% to the high 60s but has gradually increased back into the low 90s range. In 2021, total monthly revenues went from an average of $211,000 to $286,000 in November. Memory Care revenues grew by 30% from the beginning of 2021 to the end of the year. Based on results from Q4 2021, total gross revenues should exceed $3.2 million in2022.
The company has always been profitable, even through the pandemic. Their adjusted EBITDA after management fees averaged $586,000 since 2017, with a high of $ 725,000 for the period ending T12 October 2020. This assisted living, independent living, and memory care facility for sale ended 2021 with over $600,000 in adjusted EBITDA, and it is expected to exceed $1 million in 2022 based on Q4 results.
As a result of the negative impact of COVID on census and earnings, lenders are using Trailing 3 Months (T3) results to support loan requests. When annualizing the T3, the resulting fair market value of the facility at a 9 Cap would exceed $11M.
Under the watchful management of a hands-on operator, the facility has substantial upside. The current owner is largely absentee and would like to continue focusing on other business interests. A new owner could focus on Memory Care and fill up the 50 unoccupied units which could add $1.5 Million in additional revenue when rented.
Asking Price
The asking price for this assisted living, independent living, and memory care facility for sale is a firm $8 million, which includes the business opportunity, the real estate, and a long-term fixed energy annual cost contract.
