Top dollar for D.C. SNF

In one of the highest valued SNF deals ever seen in the Washington D.C. area, on a per-bed basis, a public, non-traded REIT purchased a 296-bed facility in the capitol for $50 million, or $168,900 per bed, with a 15% cap rate. For that high price (which is more than double the average price paid per bed for SNF sales in the 12 months ending September 30, 2015 of $76,900), the buyer will add a very well performing facility to its portfolio. Built in 1983, facility was 94% occupied over the trailing 12-month period ending March 31, 2014 with a 17% quality mix. Meanwhile, revenues and EBITDA were around $33.5 million and $7.5 million, respectively, which would represent a 22% margin. Included in the purchase price was a performance-based earn-out which the operator would receive upon reaching certain performance thresholds. Chris Hyldahl, Tim Cobb and Steve Thomes of Blueprint Healthcare Real Estate Advisors represented the seller in the sale/leaseback transaction. Is this high-priced transaction an anomaly or perhaps a sign of SNF transactions to come? Well, we will be discussing the active and changing SNF market at our upcoming webinar, Skilled Nursing Facilities: Buying, Selling & Valuing, this Thursday at 1PM. Tune in!


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