Portland Assisted Living

The Zett Group is pleased to present a stabilized 85-Unit Assisted Living Community located in one of the top suburbs of Portland, OR.

This community is situated just south of downtown Portland, features 85 units of Assisted Living. Originally built in 2005 and serving 65% Private-Pay residents, this community benefits from a local senior housing market that reflects slight undersupply in this suburb of Portland. With only 3 other comparable communities offering AL in a 3-mile radius, representing 245 AL beds, this 85-Unit community is positioned to maintain high occupancy numbers already proven over the past 24 months.

The asset has shown consistent NOI performance over the past 12 months, with an average monthly NOI of $121k and an average operating margin of 29%. Not only is this community attractive because of its stabilized nature and quality of the physical plant, but there’s also still room to add value through increasing the Private Pay census. With a difference average revenue between Medicaid and Private Pay residents of $950 monthly, if the future operator can increase PP census from 65% to 80%, top-line revenue will increase by nearly $175k annually just from rent and care, assuming existing rates.

The Zett Group is bringing this opportunity without an exact list price. This is due to the differing perspectives that will be received from the market regarding the ground lease the asset sits on. With an annual expense of $90k which reduces to $74k in 2031, and a lease expiration of December 31, 2056, it is likely the buyer pool will evaluate this deal 50 bps higher than the fee simple rate. This is a long-term lease with a stable rate that will reduce in the future. Buyer groups should have confidence it will have little impact to the to their ability to get financed and little impact to future returns.