It is not often that we see a portfolio sale coming from HUD, or any sale for that matter, since it has always experienced a very low default rate. But given the difficulties other lenders and landlords have had with the skilled nursing sector the past few years, it should not come as a surprise.
HUD is offering for sale a portfolio of 12 skilled nursing facilities and one supportive living facility in Illinois and Missouri. Six of the locations are in the Chicago MSA, three in the St. Louis MSA, two in the Peoria MSA, one in the Rockford, Illinois MSA, and one in the Davenport/ Moline/Rock Island, Iowa MSA.
The licensed capacity of the portfolio is 1,662 beds, but the actual operating capacity is 1,585 beds. There are a total of 899 units. Although we don’t know the allocation, these facilities sit on a total of 117.19 acres with a total building area of 869,885 square feet. Buyers will not be able to pick and choose individual properties or groups of properties. Bids, which are due by May 31, must be for the entire portfolio.
