Siefert’s smooth sale

Toby Siefert of Senior Living Investment Brokerage arranged the sale of an 87-bed skilled nursing facility in Philadelphia, Pennsylvania on behalf of a family owner wanting to exit the market. Despite its age (built in 1980), high Medicaid census (traditionally 80%) and lack of private units (there was just one combined with 27 semi-private units and eight four-bed units), the facility sold for $10 million, or nearly $115,000 per bed, which is well above the national average of $85,900 per bed. Helping its case was the facility’s 14.5% operating margin on about $8.9 million of revenues, as well as a 95% occupancy rate. Mr. Siefert procured 12 offers for the facility, eventually bringing in a regional owner/operator with a strong local presence. Several of the family members wishing to remain involved in operations were able to make arrangements with the buyer, which should ensure smooth sailing.