±34,897 SF Assisted Living Facility | Beaufort, SC

109 Old Salem Rd, Beaufort, SC 29902

Accepting Offers

±34,897 SF Assisted Living Facility | Beaufort, SC

Asking Price

$4,000,000

±34,897 SF Assisted Living Facility | Beaufort, SC

109 Old Salem Rd, Beaufort, SC 29902

Details

Asset Type: Real Estate

Estate: Fee Simple

Year Built: 1999

Number of Floors: 1

Property Size: 34,897 SF

Property Type: Other

Occupancy %: 93

Land Area: 5.67 Acres

Number of Units: 40

Investment Highlights

Regional Geography & Environment:
Sea Islands Location: The city is primarily situated on Port Royal Island, surrounded by a marshy estuary and tidal waters.
Water-Dominant Landscape: Beaufort County consists of more water than land; approximately 51% of its 468,000 acres are open waters, sounds, and marshes.
Natural Hazards: The region is highly susceptible to hurricanes, shoreline erosion, and sea-level rise.
Economic & Social Infrastructure:
Military Presence: A major driver of the local economy, the region hosts several key installations:
Marine Corps Air Station (MCAS) Beaufort
Marine Corps Recruit Depot Parris Island
U.S. Naval Hospital Beaufort
Tourism & Hospitality: The area attracts over two million annual visitors. Popular attractions include Hunting Island State Park —South Carolina’s most visited state park—and local festivals like the Beaufort Water Festival.
Demographics: As of 2023, the city population is approximately 13,700. The broader county is one of the fastest growing in the South, largely due to development near Hilton Head Island and Bluffton.
Strong Market:
Average Net Worth (Age 75+): $2,662,035
Average Household Income (Age 75+): $92,335
Average Home Value: $501,987
Property Highlights:
List Price: $4,000,000
Gross Revenue: $2,215,380 (Actual)
Occupancy: 90% (Actual)
Forecast NOI: $498,460 (normalizing expenses to 75% of Gross Revenue)
CoStar Southeast Sold Comps: $292/SF; subject property at $114.62/SF
CoStar Average National CAP & Sold Comps: 6.5% & $307/SF
2025 Weitz Replacement Cost (Construction cost only): $353/SF
FINANCIAL HIGHLIGHTS (5-Year Hold)
• Property Qualifies for a SBA 504 Loan: 25-year term,
85% LTC, and 5.722% interest
• Using 10.0% vacancy Years 1 thru 10
• Revenue growth 5% per year
• IRR: 70.04%
• Cash on Cash: 34.89%
• Acquisition CAP Rate: 12.46%
• Debt Service Coverage Ratio: 1.95
• Projected Sales Year 5: $7.952 million
• Sales proceeds after expenses: $4.66 million