Buy an Assisted Living Facility in Colorado Springs, CO

The Colorado Springs Assisted Living Market

Colorado Springs is one of the fastest-growing cities in Colorado, with a population pushing 483,000 and a median household income of $83,198. Both figures matter for assisted living operators: more residents means more demand, and stronger household income means families can support private-pay residents without relying entirely on Medicaid reimbursements.

El Paso County, which anchors Colorado Springs, has a rapidly aging population. Adults 65 and older are projected to represent a growing share of the metro area over the next decade, which directly drives occupancy rates and pricing power for local facility operators.

Colorado regulates assisted living under its "Residential Care Facility" licensing framework through the Colorado Department of Public Health and Environment. A buyer must either acquire an already-licensed facility and apply for a license change of ownership, or plan for a licensing gap during transition. Either path has a timeline. Build that into your due diligence.

How Much Does an Assisted Living Facility Cost in Colorado Springs?

As of Q1 2026, assisted living facilities nationally trade at a median asking price of $1.5M, with a range of $150K to $25M depending on size, bed count, payer mix, and real estate inclusion.

The $150K end of that range typically represents small residential care homes (6 beds or fewer) where the license and occupancy matter more than the real estate. The $25M ceiling reflects larger institutional facilities with real property included.

Colorado Springs sits in the mid-tier of this range. Purpose-built facilities with 15 to 30 beds and strong private-pay occupancy tend to list between $800K and $3M in this market.

Deal Economics: Running the Numbers

Here is a representative deal at the median asking price:

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

At a 2.2x DSCR, this deal clears our 2x target with room. The SBA 7(a) rate is approximately 10% to 11% based on current rates (WSJ Prime plus 1.5% to 2.75%), on a 10-year term for business acquisition.

The buyer equity injection here is $150,000, structured as $75,000 cash (5%) and a $75,000 seller note on full standby (5%). Full standby means zero payments on the seller note during the life of the SBA loan. Regalis Capital achieves this structure on more than 90% of its deals.

One note on the cash flow figure: it comes from broker-reported data, which typically reflects SDE (Seller Discretionary Earnings). SDE adds back owner compensation and personal expenses, so the real free cash flow available for debt service is often 15% to 30% lower. Always recast the financials yourself.

What Should You Look For When Buying an Assisted Living Facility?

This category has real upside, but it also has category-specific risk that most buyers underestimate.

Payer mix. Private-pay residents generate significantly higher margins than Medicaid residents. A facility that is 70% or more private-pay is a different asset than one running 70% Medicaid. Know which one you are buying and underwrite accordingly.

License type and bed count. Colorado distinguishes between small residential care homes and larger licensed facilities. The licensing category affects staffing ratios, physical plant requirements, and regulatory oversight. Confirm the license transfers cleanly at closing.

Staffing stability. Assisted living is labor-intensive. Check annualized turnover rates, current agency dependency, and whether the owner is personally covering shifts. Owner-operated care means the business does not run without them. That is a red flag for SBA lenders.

Census trends. Pull occupancy data for the trailing 24 months, not just a snapshot. Declining occupancy is harder to fix than it looks.

Real estate vs. business-only. Many listings include real property. If real estate is bundled in, you need a separate appraisal to confirm the allocation between business value and real estate value. SBA 7(a) can finance both, but the structures differ.

Frequently Asked Questions

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

As of Q1 2026, the national median asking price for assisted living facilities is $1.5M, and Colorado Springs facilities with 15 to 30 beds typically list between $800K and $3M depending on whether real estate is included. Smaller residential care homes (6 beds or fewer) can list below $300K but carry higher operational risk per bed.

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

Yes. SBA 7(a) loans are commonly used for assisted living acquisitions in Colorado. The standard structure is 80% SBA loan, 15% seller note on full standby, and 5% buyer cash equity injection. You will need a minimum 10% total equity injection, which Regalis Capital typically structures as 5% cash plus a 5% seller note acting as equity.

Do I need a healthcare background to buy an assisted living facility?

Not necessarily, but lenders will scrutinize your management plan. Most SBA lenders require a qualified administrator in place before closing, especially if the buyer lacks direct care experience. Buying a facility with an existing, tenured administrator significantly improves approval odds.

What is the typical cash flow for an assisted living facility in Colorado Springs?

National median cash flow for assisted living listings is approximately $339K per year as of Q1 2026, which implies a 3.7x multiple at the median asking price. Colorado Springs facilities with strong private-pay census and stable staffing can exceed this, while Medicaid-heavy or owner-operated facilities often underperform it on a recast basis.

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

Plan for 90 to 150 days from signed LOI to close. The extended timeline reflects Colorado's license change-of-ownership process through the Department of Public Health and Environment, plus the SBA underwriting timeline for deals in this price range. Starting lender conversations early shortens the back half of that window.

Talk to Regalis Capital About Assisted Living Acquisitions in Colorado Springs

Assisted living is a real business with real complexity. The regulatory layer, payer mix dynamics, and staffing dependencies mean this is not a deal to run without experienced buy-side support.

Regalis Capital's deal team reviews 120 to 150 deals per week and has specific experience structuring SBA acquisitions in the care facility space. If you are evaluating a Colorado Springs facility or looking to source one, start with a deal assessment.

Start your assisted living acquisition here.