When Platinum Healthcare purchased a 197-unit CCRC in Cincinnati, Ohio in September 2014 for $3 million, the community had already posted a $1.5 million loss on $5.9 million of revenues in 2013. This was even after the previous owner, Deaconess Long-Term Care, invested $918,000 in capital improvements in the last two years of owning it. The CCRC was over 63% occupied (its skilled nursing was 87% occupied, while assisted and independent living were just under 50% occupied, both with high Medicaid censuses). Now, Platinum is selling the community, which still is just 62% occupied overall and losing over $1 million on approximately $6.1 million of 2014 revenues. The purchase price this time was $4.5 million (not a bad return considering the lack of turnaround). Rates for independent living averaged around $1,500 per month, around $2,360 per month for assisted living, and skilled nursing was $234 per day. The buyer is a private owner/operator located on the East Coast. Ryan Fleming, Mark Myers, Joshua Jandris, Peyton Stanforth and Charlie Hilding of Marcus & Millichap handled the transaction.
Turn around…again
