Haven Senior Investments is proud to present a 22-unit, 44-bed memory care community located in the San Joaquin Valley and Fresno MSA. Fresno is the fifth largest city in California and the largest inland population in the state. The community is currently owned and operated by a local family who are retiring after many years of ownership.
Fresno County is approved for the California Assisted Living Waiver (ALW) program. The ALW program is a highly sought-after California program, which will allow a new owner to restructure the Community to capitalize on the extremely high demand in the market for government-subsidized, assisted living and memory care. The community is currently operating with 27 residents in place. However, an optimized per-unit utilization may be achieved through participation in the ALW program, which has a higher demand in the subject area than private pay as well as higher per-bed rates. By dedicating 50% of the facility’s beds to ALW, the average per-bed rate increases by nearly 20%, while allowing for higher utilization of the licensed bed count. Post-ALW stabilized revenue is over $2,500,000, which represents a 34% increase. Further accounting for additional labor and other costs associated with increased bed count as well as higher acuity care, shows EBITDAR to increase by 25% to $750,000, operating at a 29.7% profit margin.
The physical plant has been well maintained and updated over the years requiring very little in additional capital expenditure. Recent improvements include roof, flooring, HVACs, appliances, and paint.
- In place cash flow with significant upside.
- 11% Cap Rate going in, 21% Cap Rate post repositioning.
- Opportunity to recognize ~32%+ leveraged IRR over 5 year hold period.
- Recent and significant renovations to the property = turn-key physical plant.
- Fresno is the 5th largest city in CA. This community is 15 miles from downtown Fresno