A senior care campus in Milwaukee, Wisconsin, that has seen a number of transformations over the years, will soon see another, having recently traded hands with the help of Ray Giannini of Marcus & Millichap. Originally built in 1970 with 112 skilled nursing beds by a local family, the facility underwent a couple of expansions in 2005 and 2012, leaving it with 88 of the original SNF beds, 24 private subacute rehab units and 49 private assisted living units.
Due to recent survey issues, occupancy had fallen across the campus to 84% at the SNF and to 83% for the assisted living, and both acuities also maintained majority-Medicaid censuses around 70%. After over 45 years of ownership, the original family owner decided to exit the business, selling it for $17.5 million, or $108,700 per bed/unit.
The out-of-state buyer has plans to increase the census, particularly the Medicare census, hoping to take advantage of the facility’s high-traffic location within 10 miles of four major hospitals and its relatively new subacute unit. There is also almost an acre of additional land for a development opportunity. Operations must be turned around first, however, as EBITDA has dropped from well over $2.5 million to just $1.2 million at closing.
