Mike Pardoll of Marcus & Millichap has been especially prolific of late in the state of Georgia, closing three skilled nursing sales there this summer. A group of Georgia investors accounted for two of the deals, purchasing two facilities from a not-for-profit owner. Located in Cochran, one of the facilities was built in 1966 with 75 beds. It is 93% occupied, with a 74% Medicaid, 19% private pay and 7% Medicare census, and operated at a 15% margin. It sold for $5.7 million, or $76,000 per bed, with a 12.6% cap rate.
The other facility, in Thomaston, was built in 1966 and 1986. Based on 106 total beds, it is 80% occupied, with an 81% Medicaid, 11% private pay and 8% Medicare census, and also operated at a 15% margin. Its purchase price came to $7.2 million, or $67,925 per bed, with a 12.2% cap rate. The buyer decided to enter into a new lease with the existing tenant, regional provider Beacon Health Management.
Finally, another not-for-profit decided to sell its 96-bed skilled nursing facility in Macon, but for a very different reason. Because of a claim filed by an attorney for an issue with another of its buildings, the not-for-profit filed for bankruptcy. The tenant then followed suit and filed for bankruptcy. Built in 1963 and 1975, the facility is licensed for 143 beds but was configured for 96 beds by converting most triple and quad rooms into semi-private and private units. It is 85% occupied, with an 81% Medicaid, 13% private pay and 6% Medicare census. After obtaining court approval for the sale following both bankruptcies, Mr. Pardoll sold the facility to a New York owner/operator, who will operate it by himself, for $3.8 million, or $39,580 per operating bed, with a 14.7% cap rate.
