Monday, November 9, 2015

Major Business Sold


The graying -- or some cynics would say decaying -- of America is a growth industry, as baby boomers head into their twilight years. And it must be pretty good when a business would suddenly be worth 400% over the current building valuation.

The Center For Extended Care at Amherst, a 122 bed sprawling long term care facility on University Drive (opposite CVS) just sold for $13 million. The town had the building valued at $3,192,700 or four times less than the property's recent selling price.


I asked assessor David Burgess if that means the valuation will go up for the new owner, and at $20,000 tax revenue per million in valuation it would add up to a significant sum should he bump the value by a few million.

Since the deal is so recent he has not interviewed the main players, but he said it's quite possible the sale number was a "corporate financing price", which for lack of a better term is phantom money.

Thus the valuation will probably not go up at all.

 The Dakin Estate, now fallen into ruins

Kind of like a dozen years ago when Amherst College purchased the Dakin Estate near their golf course for $4.3 million to prevent Barry Roberts from developing it. The assessed value did not jump at all, and today is still valued at way less than $1 million. 

Either way, it's still good to see major business deals happening in our town.

9 comments:

Anonymous said...

I thought the colleges and university were ruining your farm town. WOW. Hopefully they will stick you in a nursing home, where many love to complain and complain and...you will fit right in.

Larry Kelley said...

As long as they have WiFi.

Anonymous said...

There's a big difference between buying a building and buying an ongoing business that includes a building.

Larry Kelley said...

Yes, Hickory Ridge Golf Course springs to mind.

Anonymous said...

What's going to happen to the people who currently work at CECA ?

Anonymous said...

I meant profitable business.

Anonymous said...

The center fore extended care and the arbors were some of the worst decisions the town made. U Drive should be the towns whore. All business and cater to student and parent needs... And the revenue would generate tax and ease the burden on the homeowner. Ask Hadley

Anonymous said...

Why did the paper say Amherst LLC bought CECAA, and the note you posted says Mavado Management Company bought it?

Anonymous said...

Personally speaking, my mother was treated great at CECAA, and The Arbors is a beautiful place. you would put these facilities where? There are plenty of places that cater to students. And their parents.