The short version: an assisted living facility sells on its operations first and its real estate second. Buyers pay for census, payer mix, staffing, licensing, and net operating income; the building matters, but a full facility in an older building outsells an empty one in a new building. Selling one well means underwriting it the way a buyer will, marketing it confidentially, and building the license transfer into the closing timeline. Here is how The DeMarco Real Estate Group at RE/MAX 5 Star Realty runs an ALF sale in Florida.
What buyers pay for
Four things drive the price of an assisted living facility: licensed capacity and current census (occupancy), payer mix (private pay, long-term care insurance, Medicaid waiver), net operating income after a market-rate management fee, and the condition of the license and survey history with the Agency for Health Care Administration. Specialty licenses such as Extended Congregate Care or Limited Nursing Services, memory care units, and a stable staff all add value. Buyers apply a cap rate to the net operating income, then check that figure against recent sales on a per-bed basis. A facility running at 90 percent occupancy with clean surveys trades at a very different number from one at 70 percent with a corrective action plan open.
Step 1: Underwrite it before anyone else does
Gather three years of financial statements, the current census by payer type, the rate sheet, staffing schedules and payroll, the AHCA license and the last three survey reports, the resident agreements, and any deficiency or corrective action history. If financials are on a cash basis or mixed with owner expenses, normalize them: buyers add back owner salary and one-time costs but they also deduct a management fee if the owner is running the building personally. A broker who has sold facilities will produce a pro forma that anticipates every adjustment a buyer’s lender will make. Ours is free and confidential.
Step 2: Decide what you are selling
Most ALF sales transfer the real estate and the operating business together. Some owners sell the operations and lease the real estate to the new operator, keeping the building as an income property. Others sell the building to an investor who leases it to an operator. Each structure produces a different price, a different tax result, and a different closing timeline. Decide with your CPA and attorney before marketing, because it changes who the buyer is.
Step 3: Market confidentially
Residents, families, and staff should not learn about a sale from a listing site. Facilities are marketed without identifying details until a buyer signs a confidentiality agreement; financials go out only to qualified buyers; tours are scheduled discreetly, often as consultant or insurance visits; and staff are told at the appropriate point in the transaction, usually near closing. The buyer pool for South Florida facilities includes regional and national operators, private equity groups, and owner-operators, many of them repeat buyers we know by name.
Step 4: Qualify the buyer on more than price
An ALF buyer must be able to get licensed, which means AHCA background screening, a financial ability review, and administrator qualifications. A buyer who cannot pass licensing cannot close no matter what the contract says. Proof of funds, operating experience, and a realistic licensing plan matter as much as the number on the offer. We qualify buyers before they receive the full package.
Step 5: Build licensing into the contract
In Florida the buyer applies for its own license through AHCA, and closing is coordinated with the change of ownership approval so care and billing continue without interruption. The contract should set the inspection period, the license application deadline, and an outside date, and should say what happens to the deposit if licensing is delayed. Transition planning covers resident agreements, staff employment, vendor contracts, pharmacy and dietary arrangements, and the handoff of records.
How long it takes
From listing to closing, four to eight months is typical: one to two months of confidential marketing and buyer qualification, two to four months of due diligence and licensing, then closing. Facilities with clean financials and surveys move faster; facilities with open deficiencies or Medicaid audit issues take longer and should resolve those before going to market.
Our track record
The DeMarco Real Estate Group has sold The Residence at Pompano Beach, a 205-bed assisted living facility, for $17.9 million (2026), representing both buyer and seller; a skilled nursing facility in Hollywood for $12.15 million (2024); and the Margate and Davie memory care portfolio, which the group sold in 2020 and again in 2022. Coverage of those sales ran in Seniors Housing Business, The Real Deal, and Traded. John DeMarco, CCIM, leads every facility listing. Learn more about our assisted living practice, or request a confidential valuation. The DeMarco Real Estate Group at RE/MAX 5 Star Realty, 1901 Harrison Street, Hollywood, FL 33020, (954) 453-1000.
Questions ALF owners ask
Can I sell my facility without residents and staff finding out?
Yes. Confidential marketing with confidentiality agreements, blind listings, and discreet tours is standard; residents and staff are informed near closing.
What is my ALF worth per bed?
It depends on census, payer mix, licensing, and income. South Florida facilities trade over a wide per-bed range; the income approach, not a per-bed rule of thumb, sets the price. A confidential valuation gives you the number for your facility.
Does the license transfer with the sale?
No. The buyer applies for its own AHCA license, and closing is coordinated with the change of ownership approval so operations continue.
Should I fix survey deficiencies before selling?
Yes. Open deficiencies lower the price and slow licensing. Clearing them before marketing pays for itself.
This guide is general information from The DeMarco Real Estate Group at RE/MAX 5 Star Realty, not legal, tax, or regulatory advice; consult your CPA, attorney, and licensing consultant. Prepared with AI assistance and reviewed by The DeMarco Real Estate Group.
