Decatur, AL

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:

• 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.

• 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.

• 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.

• 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:

• Projected Internal Rate of Return (IRR): 83.11%

• Cash-on-Cash Return: 33.16%

• Debt Service Coverage Ratio (DSCR): 1.9x

• 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:

• Loan-to-Cost (LTC): Up to 85%

• Amortization / Term: 25-Year Fixed

• Indicative Rate: ~5.856%

This high-leverage structure drastically lowers the initial equity requirement, allowing buyers to maximize leveraged returns from Day 1.

Property & Financial Summary Specifications

Brokerage & Licensing Information

• Brokerage: Bull Realty

• Alabama Broker License: # 000083871-0