Buy an Assisted Living Facility in Aurora, CO

Aurora's Senior Care Market

Aurora is Colorado's third-largest city and one of the fastest-growing in the metro area. The population skews older than Denver proper, and the 65-plus demographic is expanding steadily as Front Range families look for local care options.

Colorado's assisted living sector is licensed at the state level through the Department of Public Health and Environment. Facilities here operate under either a Class I or Class II license depending on resident capacity and care level. That distinction matters a lot when you are evaluating a target, because license type affects what you can charge, how many residents you can serve, and what staffing ratios the state requires.

As of Q1 2026, there are roughly 54 listed assisted living facilities nationally in this price range, and Colorado represents a growing share of that pipeline. Aurora specifically benefits from proximity to major medical systems including UCHealth and Children's Hospital, which drives referral volume to nearby care facilities.

How Much Does an Assisted Living Facility Cost in Aurora?

The spread in that price range tells you something important: this is not a uniform asset class. A six-bed residential care home operating out of a converted single-family home in Aurora is a completely different business than a purpose-built 40-bed memory care facility. The underwriting, due diligence, and financing approach differ accordingly.

For a facility trading at or near the $1.5M median, here is what the deal math looks like based on current market data:

These are rough estimates based on market data. Actual terms depend on individual qualification and lender.

A 1.83x DSCR clears our 1.5x floor but sits below our 2x target. That means the deal is financeable but leaves less margin for error, specifically around occupancy fluctuations or unexpected staffing costs. A strong seller note on full standby (no payments during the SBA loan term) is what makes this structure work. We achieve that on over 90% of Regalis deals.

Can You Get SBA Financing to Buy an Assisted Living Facility in Aurora?

Yes, but this is one of the categories where SBA lenders do additional screening. Assisted living is a licensed care business, and lenders want to see a clean regulatory history before they commit.

A few things that can complicate SBA approval in this space: active citations or deficiencies from state inspectors, high staff turnover documented in payroll records, or inconsistent occupancy below 75%. These are not disqualifiers in every case, but they require explanation and mitigation before a lender will move forward.

The equity injection on a $1.5M deal works out to $150,000 total: $75,000 in buyer cash and $75,000 structured as a seller note on full standby. The remaining $1.425M splits between the SBA loan and a seller carry at market-standard terms.

What to Look For When Buying an Aurora Assisted Living Facility

This is a regulated business with real liability exposure. The financial diligence matters, but so does the operational diligence.

Licensure and inspection history. Pull the last three years of state inspection reports from the Colorado DPHE. One or two minor deficiencies is normal. Repeated citations for the same issue, or anything involving resident safety, is a red flag that can also affect your ability to get SBA approval.

Occupancy rate and stability. Target facilities running at 85% or better occupancy. Anything below 75% needs a credible explanation. Occupancy data should be verifiable through billing records and census logs, not just the broker's summary.

Staffing costs and turnover. Labor is the largest expense line in most assisted living operations. If turnover is high and the owner has been covering shifts personally, the real cash flow is lower than what is on the P&L. Ask for time and attendance records.

Medicaid vs. private pay mix. Colorado's Medicaid reimbursement rates are below private-pay rates. A facility heavily dependent on Medicaid will have a different revenue profile and more regulatory oversight than one with a private-pay majority.

Real estate vs. operations. Some listings bundle the real property with the business. Others are a lease-based operations acquisition. These structure differently under SBA and require separate valuation. Know what you are buying.

Based on Regalis Capital's analysis of recent acquisitions, facilities with a clean three-year inspection record, 85%+ occupancy, and a majority private-pay resident mix trade closer to the low end of the multiple range because buyers compete harder for quality. Expect to pay up for clean.

Frequently Asked Questions

How much does it cost to buy an assisted living facility in Aurora, Colorado?

As of Q1 2026, the median asking price for an assisted living facility in this market is $1,500,000. Smaller residential care homes can list below $300,000, while larger licensed facilities can exceed $5M. The price reflects the license, resident census, and operational cash flow, not just the real estate.

What is the typical cash flow for an assisted living facility acquisition?

Median annual cash flow across current listings is $338,924, implying a 3.7x purchase multiple at median asking price. That said, cash flow figures from brokers are often presented as SDE and may include add-backs that do not survive lender scrutiny. A 15% to 50% discount to stated SDE is reasonable as a starting point.

Can I buy an assisted living facility in Colorado with SBA financing?

Yes. SBA 7(a) is the primary financing tool for acquisitions in this range. The 10% equity injection requirement on a $1.5M deal means $75,000 in buyer cash and $75,000 in a seller note on full standby. Lenders will require clean state inspection history and stable occupancy before approving care facility acquisitions.

Do I need a healthcare license to buy an assisted living facility in Aurora?

You do not need a personal clinical license to own an assisted living facility in Colorado, but the facility itself must hold a valid state license from the Colorado DPHE. Most buyers retain the existing administrator and licensed staff. You will need to pass a background check and meet ownership disclosure requirements as part of the license transfer process.

How long does it take to close on an assisted living facility acquisition?

Expect 90 to 120 days from signed LOI to close for a standard SBA-financed assisted living acquisition. The license transfer with the Colorado DPHE adds time beyond a typical business acquisition. Facilities with clean regulatory records and organized financials close faster. Deals with citations or unclear ownership structures routinely run past 120 days.

Ready to Evaluate an Aurora Assisted Living Acquisition?

Assisted living is a category where the details matter more than most. A clean facility with stable occupancy and a cooperative seller can be a strong acquisition. A facility with unresolved citations or inflated cash flow claims will cost you time and money to unwind.

Regalis Capital's deal team reviews 120 to 150 deals per week across the care and services sector. If you are evaluating a specific facility in Aurora or anywhere in Colorado, we can run the numbers, stress-test the cash flow, and structure the SBA financing to give you the best shot at a clean close.

Talk to our team about buying an assisted living facility in Aurora.