A 100-bed skilled nursing facility in the affluent northern Georgia town of Ellijay was purchased by a private Northeast-based group looking to expand their current Peach State presence. Being the only facility in an area with a growing number of retirees, this SNF was consistently well occupied above 90%. Plus, once the adjacent hospital relocated in 2016, this 50-year old facility was able to expand into much of the old building, adding more resident rooms, a senior day care center, new administrative offices and outpatient rehab. It also operated at a solid 14% margin; pretty good these days.
Its previous owner, Sunlink Health Systems Inc., was looking to redeploy capital and focus on its core business, prompting the sale. The purchase price came to $7.3 million, or $73,000 per bed, with the cap rate just surpassing 13%. Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage handled the transaction.
