Can I buy a vacant nursing home or assisted living building?
Direct answer
Yes. Vacant or closed nursing homes and assisted living buildings do sell, but they are priced as real estate and potential, not as operating businesses. With no income to capitalize, value rests on replacement cost, location and what it will take to relicense, staff and fill the building.
What to know
Valuation changes. With no net operating income, the income approach doesn't apply, so buyers lean on replacement cost, land value and comparable sales. New construction runs $300,000 to $400,000 or more per unit, which sets a ceiling on what a reusable building is worth.
Plan for licensing from the start. A vacant building has no operating history, so the new operator applies for its own license, and reopening means meeting current life-safety and building rules.
Budget for lease-up. It takes time to staff and fill a reopened community, so plan working capital for the months before income covers expenses.
Financing is usually short-term. Bridge loans of 12 to 36 months are common until the community is stabilized.
How Haven helps
Haven helps buyers evaluate vacant and underperforming communities and connects them with lenders. Browse our current senior housing listings.