Gencare Inc. has expanded out of the Pacific Northwest with a recent acquisition in Sun City, Arizona. The company bought an 80-unit independent living community for approximately $4.9 million, or $61,000 per unit, and assumed a $3.4 million HUD loan as part of the deal. The building was built in the late 1970s, and Gencare plans to invest up to $1.0 million in upgrades to the common areas and build a 20- to 25-unit addition in the next 12 months. Most of the existing units are one-bedrooms, and the community is usually 100% occupied. Before the addition and any potential rate increases, we believe annual revenues and EBITDA are close to $1.8 million and $450,000, respectively, but will be increasing in the next several years. Mark Myers and Bernie Bajoras of Marcus & Millichap represented the seller.

Senior Care Investor
February 2006