Independent Living Community
CONFIDENTIAL/OFF MARKET SALE (FOR SALE/NOT AUCTION)
New Asking Price: $6.9 Million (Reduced from $9.5 Million)
Built: 1988
Lot Size: 19.39 Acres
Building Size: 178,000 SF
Rentable SF: 125,696
Number of Units: 196 (Plus 10 Units Currently Offline)
Average Unit Size: 641 SF
Average Monthly Rental Rate Per Unit: $1,232
2016 Taxes: $222,526.45
Zoning: U2, U3EL, and U8
Buyer Broker Co-op Commission: 2%
PROPERTY OVERVIEW
SVN AuctionWorks is conducting a confidential/off market sale of a 196 unit, approximately 178,000 sf independent living community situated on approximately 19.39 acres in the Metropolitan Cleveland area. The community has 206 units, ten of which are currently offline, being used for offices and/or storage. The community is currently private pay only and offers two levels of care: independent living and catered care independent living.
The ranch-style, single-story apartments are larger than average as compared to other senior living communities. The apartments are available in studio, one bedroom, and two bedroom or one bedroom with great room floor plans. Each apartment includes a private, screened in patio, fully equipped kitchen, attic storage, built-in bookcases, vertical blinds, and personal controls for heating and air conditioning.
The common areas include a reception desk with adjacent atrium, 24 hour help desk and security station, commercial kitchen with adjacent main dining room, private dining room, health center, game lounge, salon, village store, laundry facilities, chapel, fitness room, library, post office, craft room, business office, leasing office, conference room, multiple lounge areas and an outdoor patio and courtyard area.
Living services offered include dining room meals, laundry facilities, transportation, social and religious activities, on-site salon services, on-site podiatry services, and onsite doctor services. Residents may choose from a wide variety of daily activities, social events, and special interest clubs arranged by a full-time activities director.
Resident’s pets are welcome and covered parking is available.
INVESTMENT HIGHLIGHTS
OPPORTUNITIES:
- Buyer has the ability to bring in a new operator who better understands the healthcare industry. The owner of this facility recently passed away. He initially bought the property out of bankruptcy in the 1990s and had no healthcare experience prior to owning this property. The community's manager is a sibling of the recently deceased owner. He is a minister with no prior healthcare or business experience or training.
- Potential upside exists by converting the community from independent living to assisted living.
- Potential upside exists by converting the community from private pay only to one that accepts Medicare and Medicaid.
- Potential upside exists by increasing occupancy, reducing costs and streamlining operations for greater efficiencies.
- An opportunity exists to reevaluate service package and pricing model.
- An opportunity exists for charging an additional person fee in all of the units. Currently this fee is only charged in the catered care independent living units.
FINANCIAL PERFORMANCE:
- Community is 72% occupied as of December, 2017.
- Community's average rental rate per unit is $1,232 per month.
RECENT IMPROVEMENTS:
- The building roofs were replaced between 2006 and 2008 (total cost of $227,819.00)
- A recent $50,000.00 refresh of the property included installation of a new commercial kitchen stove, landscaping, exterior painting, installation of a new awning, and patching and sealing of the driveway.
HOW TO ACCESS THE OFFERING MEMORANDUM AND OTHER CONFIDENTIAL DOCUMENTS RELATING TO THIS SALE:
To download the offering memorandum and gain access to the contents of the document vault, you must first register as a bidder on this website ( www.svnauctionworks.com ). See bidder registration in upper right hand corner of the home page. When you register, you will create a password.
Once you have registered, when you click on the document vault below, you may use your password to accept the terms of the NDA required to access the contents of the document vault. If you are having difficulty registering, please call or email Rose Lucania at 847.509.2757 or rose.lucania@svn.com.
Prospects should contact Diana Peterson at 312.218.6102 or diana.peterson@svn.com for further information and/or to schedule a tour of the property.
Offered in Cooperation with Ohio Real Estate License #264083, Victor S. Voinovich
View Property Flyer (PDF)
