The start of September saw a large number of skilled nursing acquisitions announced, mostly at lower prices, with the exception of CareTrust REIT’s purchase of seven SNFs in Idaho for $65.5 million, or $114,700 per bed. Another deal, facilitated by Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors, didn’t feature a price but involved an aging facility with room for improvement. Built in 1974, the multistory facility is the largest SNF in the area, with 297 licensed beds. However, it doesn’t operate at capacity, and while the lobby, first floor and second floor, which have short-term rehab and therapy services, have been renovated in the past few years, the upper floors, which house the long-term care and memory care services, have not.
Its performance was trending up though, thanks to new services, including cardiac care, tracheostomy care, secure dementia care and on-site dialysis improving the payor mix. There is also a commercial lease at the property. A joint venture between a public REIT and a private equity investor decided it was time to sell, to a well-established healthcare investor looking to expand in Chicagoland.
Messrs. Firestone and Segal were also involved in CareTrust REIT’s acquisition of three skilled facilities in the Pacific Northwest. The portfolio included 256 total beds and sold for $10.65 million, or $41,600 per bed, with a 15% cap rate. For more details, see Wednesday’s article on CareTrust’s latest activity.
