AdCare Buys $6M Alabama Assisted Living Facility

The 106-bed property was leased to an affiliate of C. Ross Management. This is AdCare’s first acquisition since it transitioned to a property holding and leasing company.
Meadowood Retirement Village, Glencoe, Ala.

Meadowood Retirement Village, Glencoe, Ala.

AdCare Health Systems Inc. completed the purchase of an assisted living and memory care facility in Alabama for $5.5 million. An affiliate of C.Ross Management LLC signed a 13-year lease to operate the 106-bed property. According to Alabama Media Group, AdCare confirmed the acquired property is Meadowood Retirement Village in Glencoe, Ala.

Blueprint Healthcare Real Estate Advisors brokered the sale of the 85-unit asset on behalf of the owner. The transaction represents a 7.8 percent capitalization rate on trailing operational performance. The property was built in 1984 and underwent a memory care expansion in 2012. Located at 509 Pineview Ave., just off State Route 431, Meadowood Retirement Village is near Coosa Valley Health Care Center.

The initial annual cash rent was set at $450,000 in the first year with a two percent annual rent increase. The company financed the acquisition with conventional mortgage debt of $4.1 million, with a five-year term, an annual interest rate of 4.5 percent and down payment of $1.4 million.

“An affiliate of C.Ross Management operates the adjacent Coosa Valley skilled nursing facility, thereby providing opportunities for operational improvements at each of the properties. Most importantly, this facility represents the first acquisition by the company after the transition of the company from an owner, operator and manager of senior housing facilities to a property holding and leasing company,” said Allan Rimland, AdCare’s president & CEO, in prepared remarks.

AdCare currently owns, leases or manages for third parties 30 facilities. C.Ross is AdCare’s largest operator, with 22 facilities in Georgia and Alabama through its affiliates.

Cobalt Seniors and Shepherd Health are developing an upscale 124-resident community some 80 miles north of Meadowood Retirement Village, near Huntsville, Ala., called Shepherd Living at The Range.

Image courtesy of Blueprint Healthcare Real Estate Advisors