Price Reduced! Urban Assisted Living Business

Undisclosed Address, New Mexico
Business Opportunity for Sale
Catylist Listing ID: 30515586
Property Subtypes: Health and Medical
Building Size (RSF): 14,700 SF
Sale Price: $1,720,000
Year Business Established: 2015
Gross Revenue: $696,000 (Annual)
Cash Flow: $0 (Annual)
Sale Terms: Cash, possibility of some owner financing
Last Updated: 2/5/2021

Overview / Comments

This is an excellent opportunity for an investor interested in the assisted living market. With New Mexico attracting retirees looking for good weather and a better cost of living, the demand for assisted living facilities will continue to grow for another 15-20 years. The business model for this offering is to provide a secure, private-pay facility with the walkability and accessibility that come with an urban environment. The assisted living facility opened in 2015 and occupies +/- 8,000 sf of the building. The facility has a capacity for 25 beds and has a 90%+ occupancy rate in its 3rd year of operation.

This property may qualify as an EB-5 investment. Contact broker for more details.

Architectural plans and city permits have been approved for renovating the second half of the building, which will add another 20 beds, for a total of 45. Projected cost to complete the build-out is $1,000,000 and will result in 16,000 sf of useable space.

The facility is built out with higher end materials and has a fully equipped commercial kitchen and multiple common areas with partial kitchens for snacking.

Annual Gross Revenues (at 100% occupancy) for the 45-bed facility are projected at $1,632,000 with an NOI of $932,528. At 85% capacity, NOI is projected to be $700,688.

This is an asset sale. Owner may consider partial owner financing. Gross revenue is projection for 2020.

Additional Details

Industry Segment: Long-Term Care Facilities
Reason for Selling: Owners are pursing other interests.
Value of Inventory Included ($): $0
Value of Furniture, Fixtures, and Equipment ($): $19,000
Real Estate Status: Real Property
Value of Real Estate Included ($): $1,530,400
Mgmt/Training Support Description: Onsite manager. Able to operate as administrator for remote purchaser.
Growth/Expansion Opportunities: A recent article by Kimberly Fowler on notes that a recent Nielsen marketing report states that just a few years, adults over the age of 50, will control 70% of the nation’s disposable income. These aging Boomers are looking for quality and experience as they downsize into senior living and assisted living facilities, and many have the money to afford what they want. This assisted living package comprises a 14,700 sf facility that is being renovated to provide exceptional living accommodations for those in need of short- or long-term assisted living arrangements. The owners have done the heavy lifting in building out the facility, staffing it and attracting tenants. They are looking for new owners to step in to take over the smoothly running facility and expand at will. Income after completion of the building out is projected to be between $700K and $935K with a CAP rate of 2.6-4.2. In a few short years, the owners have renovated and filled 20 rooms, each with a private ADA bath. Nicely appointed rooms, commercial kitchen, common areas including a second snack kitchen, and multiple amenities make this an attractive choice. Plans to complete the renovation of the building and double the number of beds have been approved and permitted.


Photograph of Listing Agent

Alfredo Barrenechea

Absolute Investment Realty CARNM CIE Member
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