A healthcare campus in Cleveland, Ohio with both skilled nursing and Medicaid-waiver assisted living beds just sold to its in-place operating group. Ryan Saul and Brad Clousing of Senior Living Investment Brokerage represented the private partnership seller, which was divesting the property to focus on other investments and areas of the country.
Originally built in 1978, with improvements made in 1991 and 2014, the community’s independent living units were converted to assisted in 2014. Operations could improve, as the 66-unit assisted living community was 59% occupied and the 99-bed SNF was 79% occupied. However, one AL wing with 24 units was being renovated at the time of the sale, giving the new owner an opportunity to immediately increase census and revenues once the project is complete. They also plan to improve the Medicare census at the SNF. The purchase price came to $11 million, or $66,700 per bed/unit, with an 11.3% cap rate.
