Assisted Living Project - Determining Rent

[Ryan J Wenrich]

I am considering purchasing a building to convert to an assisted living community.  The community would be run by a more experience operator.  I would simply hold the building as the landlord.  Purchase price is about $400k.  Additional updating is about $500k.  There are 11-13 bedrooms, a commercial kitchen, and a few other rooms to be used as offices, community spaces, laundry, and possibly a small gym.

What should I charge the operator for rent on this?  Obviously, as an assisted living community, the residents will pay a premium for services, so the operator is comfortable paying me a premium as landlord.  I want to be fair, but I am also concerned about the additional risk due to the fact that this building could not easily be converted to any other use should this operator fail.  

Any thoughts on how to determine a reasonable rent would be welcome.  Thanks BP Community!