There’s a new entrant to the skilled nursing market. Northeast-based Pyramid Healthcare Management is a recently formed provider, run by two principals in New York and a Tennessee-based principal with operating experience. That will come in handy with the company’s first acquisition for two skilled nursing facilities in Georgia.

Both built around 1970, these facilities are considered to be “value-add,” and are being strategically divested by the publicly traded REIT owner. The 100-bed facility in Rome and the 210-bed facility in Columbus combined for 81% occupancy (just below the national average), with a quality mix at about 20%. And while they brought in approximately $15 million in revenues, the operating margin was well below average, albeit above break-even.

However, the exiting operator had conducted a market study for ventilator beds at the Columbus location, which came back very positive. Plus, one of the buyer’s principals owns a respiratory care business, so that opportunity aligns closely with their experience. The facilities sold for $12.725 million, or $41,050 per bed, and the transaction was facilitated by Mike Segal and Gideon Orion of Blueprint Healthcare Real Estate Advisors, with Trent Gherardini leading the way on the marketing effort.

Moving forward, in addition to improving operations (and cash flow) at the Georgia SNFs, Pyramid is looking to grow its portfolio. With so many high-profile exits from the skilled nursing industry in the last year, this group is certainly bucking that trend.