When it works, it works

Success really can breed success. At least, that is the case for a skilled nursing facility in Lubbock, Texas that has already expanded once, and will soon grow again. Built in 2011 with 78 beds, all in private rooms, this skilled nursing facility added another 30 private beds and expanded its therapy gym by 1,300 square feet in 2013, at a cost of $2.6 million. Now, with occupancy averaging 89% from January 2015 to mid-year 2016, the local family owner/operator has decided to invest again in improvements and an expansion. They turned to Kevin Giusti and Michael Vaughn of Walker & Dunlop to arrange a $15.5 million refinance, which will provide the cash necessary to continue to grow their business. The loan represents about 75% of the facility’s value, which comes to approximately $191,870 per bed. Given the national skilled nursing price per bed average for the four quarters ended September 30, 2016, is $89,500, that seems appropriate for the relatively new, well-run operation.