Strawberry Fields REIT just added a 58th skilled nursing facility to its growing portfolio, at a price of $1.0 million, or $15,625 per bed, in cash. The company bought the 64-bed facility in Lebanon, Indiana and leased it to The Waters under a 10-year term with two five-year extensions. Strawberry Fields certainly got a good price for the property, but for good reason.
Built in the 1970s, it was only 47% occupied with an 80% Medicaid, 7% Medicare and 13% private pay census. We can’t imagine cash flow was high either. And while we hear the facility is in relatively good condition, Strawberry Fields will invest in improvements. The seller is Hickory Creek Healthcare Foundation, a skilled nursing provider with facilities in Indiana (14) and Ohio (1).
