Listing Summary
Licensed 43-unit / 49-bed assisted living facility for sale in Auburn, AL ($3,400,000 | 16.01% Cap Rate). 92.2% occupancy, high gross revenue, SBA 504 eligible.
Full Description
Premier Assisted Living & Memory Care Asset in Auburn, AL
An exceptional healthcare investment opportunity, this ±33,842 SF licensed assisted living and memory care facility situated on ±4.46 acres in Auburn, Alabama offers investors immediate high-yield returns coupled with long-term stability. Featuring 43 units licensed for 49 beds, the property is offered at $3,400,000 ($69,388/bed)—representing a strategic entry point into one of the Southeast's most dynamic and rapidly growing regional economies.
Known affectionately as "The Loveliest Village on the Plains," Auburn blends collegiate tradition, high-technology industry, and modern residential expansion. The city serves as a premier retirement destination for Auburn University alumni, providing an ideal climate for specialized senior housing options.
Affluent Senior Demographics & Market Supply Deficit
Positioned just 9 minutes from the Auburn University campus, the facility captures strong local demand supported by excellent wealth metrics and demographic fundamentals:
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Affluent Target Demographic: Within the immediate trade area, residents aged 75 and older boast an average net worth of $1,696,281, an average household income of $70,747, and an average home value of $361,052.
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High Educational Attainment: Nearly 68% of Auburn residents hold a bachelor's degree or higher, reflecting a highly educated population base with strong private-pay capacity for specialized senior care.
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Documented Market Need: Independent market analysis shows a 10-mile supply deficit of 82 senior care beds, allowing the facility to maintain its dominant competitive position and high occupancy.
Facility Design, Layout & On-Site Amenities
Constructed on a spacious ±4.46-acre single-story campus zoned CDD (Commercial Development District), the facility features elegantly detailed interiors designed to support both standard assisted living and specialized memory care programs:
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Unit Mix & Accommodations: Offers a combination of spacious single rooms and oversized executive suites tailored for individual and couple occupancy.
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On-Site Amenities: Fully equipped with a professional commercial kitchen, dining halls, an intimate theater, a full-service beauty salon and barbershop, private activity rooms, and wheelchair-accessible grounds.
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Care Services: Staffed for 24/7 personalized care assistance, medication management, and structured memory care programming.
Exceptional Financial Performance & SBA Financing Options
Operating at a robust 92.2% actual occupancy rate, the asset generates $2,176,894.66 in actual gross revenue. Normalizing operating expenses to 75% of gross revenue produces a forecasted NOI of $544,233.66, representing an Acquisition Cap Rate of 16.01%.
5-Year Hold Projection Highlights:
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Leveraged IRR: 92.6%
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Cash-on-Cash Return: 55.2%
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Debt Service Coverage Ratio (DSCR): 2.48x
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Projected Sale Value (Year 5): $8,600,000 (~$5,800,000 net proceeds after expenses)
SBA 504 Financing Eligibility:
The property qualifies for favorable long-term debt through the SBA 504 Loan Program:
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Loan-to-Cost (LTC): Up to 85%
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Term / Amortization: 25-Year Fixed
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Indicative Interest Rate: ~5.856%
Property Summary Specifications
| Parameter |
Details |
| List Price |
$3,400,000 |
| Price Per Bed |
$69,388 |
| Building Size |
±33,842 SF (~$100 / SF) |
| Lot Size |
±4.46 Acres |
| Capacity |
43 Units | Licensed for 49 Beds |
| Property Subtype |
Health Care / Assisted Living & Memory Care |
| Actual Gross Revenue |
$2,176,894.66 |
| Forecasted NOI |
$544,233.66 |
| Acquisition Cap Rate |
16.01% |
| Actual Occupancy |
92.2% |
| Unmet Market Demand |
82 Beds (10-Mile Radius) |
| Target Demographic Net Worth (75+) |
$1,696,281 |
| Year Built |
1998 |
| Zoning |
CDD (Commercial Development District) |
| CoStar Southeast Sold Comps |
$233 / SF |
| Weitz 2025 Replacement Cost |
$343 / SF |
| Financing Structure |
SBA 504 Eligible (85% LTC, 25-Yr Term, ~5.856% Rate) |
Quick Glance
- Listing ID:
CL-Alabama-28181
- Status:
Active
- Year Build:
1998
- Building Size:
33,254 SqFt
- Lot Size:
4.46 Acr
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