Matthew Alley of Senior Living Investment Brokerage was certainly busy over New Years, closing a couple of rural SNF transactions. First, he and Ryan Saul sold a 99-bed facility in Clinton, Iowa (about 40 miles northeast of Davenport) for $2.1 million, or $21,212 per bed. Built in 1950, but with updates in the 2000s, the facility was just 72% occupied and losing money. The national real estate owner leased it to a national operator, but that was set to expire on January 1, 2017. Despite closing the transaction in December, the buyer, a regional owner/operator with other facilities in the state, took over operations on January 1.
Then, Mr. Alley went down to Synder, Texas to sell a 99-bed skilled nursing facility that is not exactly firing on all cylinders. Currently, there are only 72 beds that are operational, of which 89% are occupied. The 40-year old facility was also only operating at an 8.1% margin on approximately $5.4 million of revenues. A Texas operator purchased it from a San Antonio-based regional operator for $3.72 million, or $38,299 per bed, with a 12.8% cap rate.
