Two Texas skilled nursing facilities formerly operated by the now-bankrupt Senior Care Centers (SCC) found a new owner with the help of Matthew Alley of Senior Living Investment Brokerage. Both built in 2008, these two SNFs each have 128 licensed beds, 51,000 square feet, and are located in growing central Texas submarkets. They were the only two SCC-operated facilities owned by a local real estate owner. One facility, in New Braunfels, was 75% occupied, while the Round Rock SNF was just 64% occupied. Not surprisingly, the operating margin was far below SNF standards, at 3.5%.
Overleverage and expensive leases contributed to Senior Care Centers’ bankruptcy filing in December 2018 (according to the company) and also led to SCC’s decision to withhold rent owed to Sabra Health Care REIT, which then terminated the leases on 36 SCC-operated SNFs. Hopefully, these problems are behind the two SNFs, which are now under the ownership of a New York-based operator with a strong presence in Texas. The purchase price came to $20.5 million, or $80,100 per bed.
