Matthew Alley of Senior Living Investment Brokerage recently closed two transactions, both featuring potential turnaround opportunities. First, Mr. Alley handled the sale of a 62-bed skilled nursing facility in Poteet, Texas for $850,000, or $13,700 per bed. Built in 1964, the facility was just 48% occupied, and only 49 of its total beds were dually certified. On top of that, it operated at a 0.99% margin on $1.38 million of revenues. So there is room for improvement for the buyer, a private Texas-based owner/operator looking to expand in South Texas (this asset is located over 35 miles from the San Antonio area).
Next, together with Toby Siefert, Mr. Alley facilitated the sale of two assisted living communities in Pennsylvania with approximately 250 total units. Portions of the buildings were constructed in 1960, with continual updates and additions through 2004. But the seller was looking to retire in this strong market, giving the buyer its first acquisition since starting the new company (the principal of which has significant experience in seniors housing operations as a former partner of another chain). This buyer should be able to improve on the operations through increased marketing and some expense savings. We have estimated the price to be approximately $70,000 per unit.
