A local mom & pop sold its only skilled nursing facility in Lodi, California, and hired Rob Reis of Marcus & Millichap to seal the deal. Built in stages between 1956 and 1964, the facility features 86 licensed beds in 49 units, split between 14 private rooms, 27 shared rooms and six three-bed wards. There was also a secure dementia ward comprised of 18 beds. Occupancy was consistently in the mid-90s, with an approximate 70% Medi-Cal census, but there was also strong local competition, so cash flow was negative.
The new owner should be able to take advantage of the steady income from the dementia unit, the quality physical plant and implementation of PDPM later this year to turn things around. That will be the job of a California-based owner/operator going forward.