The Knapp Group of Marcus & Millichap, led by Jim and Justin Knapp, closed two deals in succession, one in Maryland and one in Michigan. First, after yielding five offers that pushed the selling price $1.75 million over list, Messrs. Knapp sold a 145-bed skilled nursing facility in Burtonsville, Maryland, for around $17.25 million, or just under $119,000 per bed. That price is impressive, considering the 20-year old facility was losing over $500,000 annually. Occupancy was actually above average at 85%, but given that the current average of the national skilled nursing census just plunged to a new record-low of 81.7%, according to NIC, “above average” doesn’t mean what it once did. The facility was owned by a Michigan-based not-for-profit, so we imagine the buyer, a private Maryland-based owner/operator with several other SNFs in the state, believes they can improve that operating margin.
Next, the Knapp Group sold an independent/assisted living community in Traverse City, Michigan when its owner decided to take advantage of the still-high average prices for seniors housing communities and retire from the business. Built in 1989 with an addition in 2001, the community features 36 IL and 20 AL units, and was 94% occupied at close. Its new owner is locally based and operates several other assisted living communities in northern Michigan. They paid $8.165 million, or $145,800 per unit.
