Twenty years ago, a well-operating 59-bed skilled nursing facility sold for $2.25 million, or about $41,000 per bed. With an occupancy of 95%, a 42% private pay census and a 15% operating margin, things were looking up for the 25-year old facility. However, in recent years, operations began to suffer with low occupancy and negative-to-breakeven cash flow as recent as early 2014. But the most recent owner/operator turned it around, stabilizing occupancy to around 90% and improving cash flow. Quality mix is currently in the mid-teens. Now, a regional owner/operator based in southeast Florida looking to expand its presence on Florida’s west coast is purchasing the facility, paying $4.9 million, or $83,050 per bed. Trent Gherardini of Blueprint Healthcare Real Estate Advisors handled the transaction.
Flashback Friday
