Listing Summary
±33,906 SF senior care facility for sale in Decatur, AL ($3,800,000 | 12.3% Cap Rate). Strong cash flow, SBA 504 eligible, 196-bed unmet market demand.
Full Description
Premier Senior Housing Asset in the Huntsville-Decatur CSA
An exceptional real estate investment opportunity, this ±33,906 SF senior care facility situated on ±2.97 acres in Decatur, Alabama is positioned directly in the heart of a rapidly growing senior demographic. Offered at $3,800,000, this turn-key medical and senior housing asset combines strong existing cash flow with remarkable upside potential in a high-demand submarket.
Decatur serves as the second-largest municipal core in the thriving Huntsville-Decatur Combined Statistical Area (CSA), a major regional economic engine boasting a population exceeding 880,000. Acting as the primary healthcare and commercial service hub for neighboring Lawrence and Limestone counties, the facility captures a expansive regional draw.
Strong Senior Market Fundamentals & Wealth Metrics
Decatur presents ideal structural dynamics for specialized senior housing and assisted living operators:
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High Senior Density: Approximately 18.1% of Decatur’s population is aged 65 or older, exceeding national averages. Across the wider Metropolitan Statistical Area (MSA), nearly 1 in 5 residents is a senior citizen.
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Substantial Purchasing Power: Local residents within the 75+ demographic feature an average net worth of $1,696,281, average household incomes of $70,747, and average home values of $361,052.
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Favorable Cost of Living: Coupled with a citywide median household income of $63,987 and a cost of living roughly 12% below the national average, families in the area hold greater discretionary income to fund private-pay senior care options.
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Severe Market Supply Deficit: Independent market analysis indicates a 196-bed shortage within a 10-mile radius, offering a clear pathway for rapid absorption and long-term high occupancy.
Compelling Financial Returns & Value-Add Potential
Currently operating at 70.5% actual occupancy, the asset generates $2,174,408 in gross revenue. By normalizing operating expenses to 75% of gross revenue, the forecasted Net Operating Income (NOI) reaches $543,602, establishing an entry Acquisition Cap Rate of 12.3%.
5-Year Hold Investment Metrics:
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Projected Internal Rate of Return (IRR): 83.11%
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Cash-on-Cash Return: 33.16%
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Debt Service Coverage Ratio (DSCR): 1.9x
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Projected Year 5 Valuation: $9,500,000 ($6,300,000 net proceeds after sale expenses)
Furthermore, the acquisition cost of ~$112/SF offers immediate equity protection when benchmarked against regional transactions (CoStar Southeast Sold Comps at $233/SF) and physical construction cost benchmarks (2024 Weitz Construction Replacement Cost at $273/SF).
Advantageous Debt Financing Options
This property qualifies for attractive owner-user or specialized investor financing through the SBA 504 Loan Program:
This high-leverage structure drastically lowers the initial equity requirement, allowing buyers to maximize leveraged returns from Day 1.
Property & Financial Summary Specifications
| Parameter |
Details |
| List Price |
$3,800,000 |
| Building Footprint |
±33,906 SF (~$112 / SF) |
| Site Area |
±2.97 Acres |
| Location |
Decatur, AL (Huntsville-Decatur CSA) |
| Actual Gross Revenue |
$2,174,408 |
| Forecasted NOI |
$543,602 |
| Acquisition Cap Rate |
12.3% |
| Actual Occupancy |
70.5% |
| Unmet Market Demand |
196 Beds (10-Mile Radius) |
| Target Demographic Net Worth (75+) |
$1,696,281 |
| CoStar Southeast Sold Comps |
$233 / SF |
| Weitz Replacement Cost |
$273 / SF |
| Financing Structure |
SBA 504 Eligible (85% LTC, 25-Yr Term, ~5.856% Rate) |
Brokerage & Licensing Information
Quick Glance
- Listing ID:
CL-Alabama-28179
- Status:
Active
- Year Build:
1999
- Building Size:
33,906 SqFt
- Lot Size:
2.97 Acr
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