September 30, 2020
Sale of Aster Senior Communities of Cottage Grove and Drumlin Residences in Wisconsin
ESI represented the sale of Aster Senior Communities of Cottage Grove and Drumlin Residences, a 154-unit Independent Living, Assisted Living & Memory Care campus in Cottage Grove, Wisconsin.
The campus first opened its doors in 2006 with the 70-unit assisted living community, then followed by the 24-unit memory care community in 2016 and the Drumlin Residences in January of 2018. The campus maintained a strong and dominant presence within the local market allowing the campus to achieve 93%+ occupancy for the last few years.
Despite the COVID-19 pandemic, the assisted living and memory care portion of the campus consistently maintained revenue at $5,000,000 and EBITDAR of $1,500,000 on an annualized basis. The 60-unit independent living portion of the campus, Drumlin Residences, was able to reach stabilized occupancy in less than 24 months and has maintained 95%+ occupancy ever since. Upon stabilization, the Drumlin Residences had an annualized EBITDAR of $700,000 for a total combined campus EBITDAR of $2,200,000.
ESI represented the seller, an independent owner, in the transaction. Jason Stroiman, President of ESI, commented “The senior living campus in Cottage Grove presented an exciting opportunity for a regional operator to add consistent cash flows to their existing portfolio and leverage their expertise to bring even stronger returns.” Capri Communities, a large regional owner-operator, acquired the campus and will fold this into their existing portfolio in Wisconsin.