Mid-Atlantic Health Care is exiting the skilled nursing market with the sale of its eight remaining facilities in Pennsylvania. The company was still growing its portfolio (which at one point numbered over 20 facilities) as recently as December 2015, so this move, and its sale of 14 skilled nursing facilities late last year, marks a precipitous divestment.

Back to the June 2017 deal, while the real estate will continue to be owned and leased by Colony NorthStar (the REIT product of the merger between Colony Capital and NorthStar Asset Management Group), Mid-Atlantic sold the operations to Lakewood, New Jersey-based Mima Healthcare. Five of the facilities are located in Philadelphia (three each have 180 beds, one has 240 beds and the largest features 396 beds), one is in nearby Royersford with 467 beds, and two are in central Pennsylvania: a 138-bed facility in Milton and a 125-bed facility in Watsontown. The portfolio totals 1,906 beds and generates more than $205 million in annual revenue. Occupancy was strong at 94% across the facilities.

As we previously mentioned, Mid-Atlantic already had one foot out of the sector, selling a portfolio of 14 skilled nursing facilities and 1,800 total beds in Maryland (12) and Pennsylvania (2) late last year. Healthcare Transactions Group handled both transactions on behalf of Mid-Atlantic. Looking ahead, this deal will triple the size of Mima’s operations, which previously only operated three facilities in New Jersey and one in Vermont. We wish them a smooth transition.