Rob Reis of Marcus & Millichap handled the sale of a 75-bed skilled nursing facility in Stockton, California, yielding multiple offers and ultimately closing over the asking price at $8.3 million, or $110,700 per bed. Mr. Reis represented the seller, a local single-asset owner that decided to sell the property to a new partnership looking to do business in California.
Built in 1989 and renovated in 2009, the facility was occupied in the high-80s, with a quality mix around 20%. There are three private rooms and 36 semiprivate rooms on a 1.77-acre lot. It operated at a 15% margin on nearly $8 million of revenues and, under the previous tenant, generated more than $710,000 in triple-net lease revenue. Sounds like a solid operation.
