Senturian Sells Two Assisted Living Facilities for $175,000 per unit – 5% Cap Rate

Senturian closed on the sale of two assisted living facilities in North Alabama in December of 2018. The facilities are Westminster Assisted Living of Cullman and Westminster Assisted Living of Decatur. The facilities were in receivership after going into default on their bond debt. Each consisted of 40 resident rooms including memory care and were the premier facilities in their markets. Overall occupancy was 82% at closing.

Senturian conducted a stalking horse bid process to achieve the absolute highest price for the bond holders. Affinity Senior Living ultimately purchased the two facilities for just over $14,000,000 or $175,000 per unit. This transaction yielded a 5% cap rate on trailing 12, which is considerably better than market and is an example of how Senturian is able to get the absolute best terms for its clients.

The challenges that this assignment presented were the small size of the facilities and the regulatory environment in the state of Alabama. However, the transaction showed that there is considerable appetite for premium assets in tertiary markets across the Southeast.


Watson McCollister
Senturian Senior Housing Brokerage