We have seen a number of skilled nursing facilities sold this month that have seen better days, or at least hope to. The theme continued at the start of February, two SNF transactions in Texas were announced in succession involving struggling facilities. First up, The Ensign Group purchased a facility in San Antonio that was just 34% occupied. The campus, which features 124 skilled nursing and 17 assisted living beds, is subject to a long-term ground lease. There is some promise however, as the facility is adjacent to a 400-unit independent living community, a population for which it hopes to provide care and services. Ensign acquired both the real estate and operations, which it added to its portfolio of 211 healthcare facilities (51 of which are owned).
Then, a 75-bed skilled nursing facility operating at about breakeven in Hondo sold to an independent owner/operator based in the Dallas/Fort Worth area for $1.8 million, or just $24,000 per bed. Built 50 years ago about 43 miles southwest of San Antonio, the facility was 67% occupied and earned only $10,000 in EBITDA. But now it is off the plate of the Texas-based owner/operator seller, with the help of Matthew Alley of Senior Living Investment Brokerage.
