Evans Senior Investments represented the seller in the sale of Somerset Court Rapid City, an 87-unit, 100-percent private pay community in Rapid City, South Dakota, for $7.1 million or $81,600 per unit in an asset sale structure.
Built in 2004, Somerset Court is located close to the downtown area of Rapid City. At the time of sale, the community averaged 85 percent occupancy in the prior 12 months and was 100 percent private pay. The community was profitable, posting a 20 percent EBITDAR in the trailing 12 month period, but offered value-add opportunities for new ownership to increase occupancy to stabilized levels of 90 percent and above.
ESI represented the seller, an independent owner/operator, in the transaction.
The buyer was a private REIT based in North Dakota.