A large Missouri-based skilled nursing operator just increased its scale in the region with the purchase of a 136-bed skilled nursing/assisted living facility in Pacific, Missouri. Jeff Binder and Patrick Byrne of Senior Living Investment Brokerage facilitated the transaction, generating eight offers for the facility.
Originally built in 1986, the SNF portion features 120 beds and is in good condition, considering its age. A 16-unit assisted living wing was added in 2005. Operations could be improved across the board, with occupancy sitting at 80% and the operating margin just above 6% on nearly $6.6 million of revenues. Those financials do not reflect a sizeable Medicaid rate increase approved in the Fall of 2018, but we know it will take more than a rate boost to bring operations up to par.
A group of local investors, some of whom originally developed the property, was looking to realize their investment objectives, prompting the sale. With the acquisition, the buyer is able enhance its referral network in the region. Its scale should allow it to manage expenses and capitalize on that Medicaid rate increase. No purchase price was disclosed.
