How are assisted living facilities valued?
Direct answer
Assisted living facilities are valued mainly on income: stabilized net operating income divided by a market cap rate. Appraisers and brokers cross-check that result with comparable sales on a price-per-unit or per-bed basis and with replacement cost. Buyers pay for income they can verify and keep after closing.
What to know
Normalize NOI first: add back owner-specific and one-time expenses, and deduct a market management fee and replacement reserve.
Pick the right cap rate for the care type, class and location.
Cross-check against comps and the $300,000 to $400,000+ per-unit cost of new construction.
Example
A community with $500,000 of NOI is worth about $7.14 million at a 7.0% cap rate and about $7.69 million at 6.5%.
How Haven helps
Haven values communities on their actual operating statements and current market data. See What's My Property Worth.