The facility was previously operated as Autumn Wind of Louisburg but was closed as result of operational matters by the State of North Carolina in September 2016. We have the approval to reopen the facility from the State of North Carolina with the existing Certificate of Need for 60 beds. Since the facility was closed in 2016 due to operational issues, we are purchasing the facility and existing licenses for substantially less than market value. Our purchase price was $1,250,000 and we have invested $200,000 into renovations to the building, furniture, and fixtures. Our proposed renovations and management plan have already met the approval of the State of North Carolina Department of Health and Human Services and we have obtained their approval on the acquisition and change of ownership of the bed license.
Prior to its closing, the facility maintained a very high occupancy rate and high level of gross income from its operations. The area is in a northern suburb of Raleigh/Wake Forrest and is positioned to continue to maintain a high occupancy as there are very few facilities that cater to the affordable level of care in the area.
North Carolina is a “certificate of need” (or “CON”) state. The state issues licenses or CON’s to facilities based on the specific need of each county in the state. The state has demonstrated that it does not intend to allow over-development of Assisted Living Facility properties by limiting the increase of CON licenses throughout the state. Current trends have been for groups to acquire only the CON of an existing facility and build a high-end facility using the license. This has placed a greater need on the licensed beds that operate at an affordable rate and puts a premium value on this license.
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