The IPA Seniors Housing team represented a not-for-profit health system in its sale of a 120-bed skilled nursing facility in Brockport, NY. Founded in 1944, the facility was part of the Lakeside Health System until, after years of financial distress, the system sold most of its assets and closed the 61-bed acute-care hospital adjacent to the Brockport SNF.
The facility, whose current four-story building was constructed in 1997, remained a separate not-for-profit corporation without a union. It is composed of one floor of administrative offices, the kitchen and dining services, and the top three floors each containing six private rooms and 17 semi-private units, for a total of 120 beds. Expenses ran high under not-for-profit ownership, with only slightly positive EBITDA on approximately $11.4 million of revenues.
The buyer, Post Acute Partners, should be well equipped to turn operations around as it has been the most prolific buyer of distressed skilled nursing facilities in the state of New York with the goal of being the largest post-acute care provider in upstate New York. It paid $7.875 million, or $65,625 per bed, for the facility. Mark Myers, Josh Jandris and Peyton Stanforth of IPA Seniors Housing represented the seller and procured the buyer in the transaction.
