Jim Baranello of The Prestige Group closed yet another personal care deal in Pennsylvania, following up on his two-facility sale in the state earlier this month. In that previous deal, he represented a seller divesting their last two communities: a 56-unit personal care community in Montoursville and a 59-unit community in Danville, both located in north central Pennsylvania.
While the Danville community was operating well with healthy cash flow and occupancy, the Montoursville community was more of a turnaround opportunity. Licensed for a combined 126 beds, the communities featured a 100% private pay census. The private buyer, who was looking to expand their operations in the area, paid $9.1 million, or $79,800 per unit. It will largely be business as usual in Danville, but for the struggling property, the new owner plans to renovate, raise rents and add memory care to turn things around. That’s a start.
Mr. Baranello was clearly not ready to settle down before the holiday break, also closing the sale of a 20-unit personal care community in Beaver County, Pennsylvania. The stabilized community was occupied in the mid-90s. However, its rents were below-market, so that gives the buyer some room to raise them, after a renovation. A private family that had developed the property, and owned and operated it ever since, decided it was time to retire. The buyer was a private owner with other healthcare facilities in the area.
