Colorado assisted living owners
A private value tool for assisted living owners and operators.
Charlie Cummings approves each request personally. Your information stays with Innovate CRE.
Appraisers value it as a going concern. They take the facility's existing net operating income (NOI) and divide it by a capitalization rate, typically 8% to 11% for Colorado assisted living. That market value is then split into three parts: the real estate, the furniture, fixtures and equipment (FF&E), and the business, which appraisers call the intangible assets.
Most Colorado assisted living trades between an 8% and 11% cap rate. Homes with a waitlist, a high share of private pay residents, clean state surveys and an administrator who runs day to day move toward 8%. Small, owner run homes with more Medicaid residents move toward 11%. A lower cap rate means a higher value.
Appraisers divide NOI by a lease coverage ratio, about 1.40 today, to find the rent the building could earn from an operator. That rent is valued at a real estate only cap rate, usually around 8%. FF&E is valued at construction cost less wear. Whatever value is left after the real estate and FF&E is the business.
No. Use operating costs only: staff, food, utilities, insurance, property taxes, supplies and repairs. Leave out your mortgage principal and interest, depreciation, your own pay and any personal or one time costs. Value is figured before debt, so a buyer can finance it their own way.
Colorado counties reappraise every two years from a fixed date, so their actual values trail the market and miss recent improvements. They also value only the real estate, not the business. We show the county value as a check beside the income based real estate value.
Recent small home sales on the Front Range have ranged from roughly $78,000 to $133,000 per bed. Prices vary widely, even per bed, because every sale includes the business: occupancy, private pay mix, staffing and licensing move price as much as the building does.
A few brokerage firms work in this space. Most listings are shared only on ReColorado or CoStar, where just brokers and investors with access can see them, and sometimes the business is listed on BizBuySell. That means many qualified buyers never see a facility for sale. DealFast takes your facility straight to the operators and investors most likely to buy, privately.
Most of a sale happens after the offer. Innovate CRE guides you from early, confidential marketing through the challenges that can come up along the way: inspections, the appraisal, the buyer's financing and everything else between offer and closing, so problems are solved before they cost you the deal or your price.
Yes. A DealFast confidential sale uses no sign and no public listing. Buyers see a blind profile first, sign a confidentiality agreement, and you approve each one before they see any financials. Staff, residents and families hear nothing until you decide.
A current rent roll, your profit and loss statement year to date and for the last two full years, a balance sheet, and two years of business tax returns. Having them ready shortens due diligence and supports your price.
You can bring in a property manager to run the business and step back from daily operations, or refinance to pull cash out while keeping both the building and the business. If you do sell, the real estate portion may qualify for a 1031 exchange into other property.
It is a starting point, not an appraisal. Your value depends on your actual financials, licensing, resident mix and the property itself. For a confidential valuation based on your rent roll and statements, contact Charlie Cummings at Innovate CRE.