It’s not always easy to get a senior care deal done in Illinois. But Patrick Byrne and Jeff Binder of Senior Living Investment Brokerage took the challenge and sold a portfolio of three skilled nursing facilities and two assisted living communities in the central and southern part of the state.
Built between 1976 and 2004, with various capital improvements made in 2011, 2014 and 2016-2018, these properties are located within 100 miles of each other. The SNFs total 286 beds, while the AL buildings combined for 97 units, with an overall average occupancy of 79%. Operations at the skilled nursing facilities had been very stable in the last three years, averaging $2.8 million in annual EBITDAR, while the assisted living communities were trending upwards with some needed physical plant improvements and rent increases to bring them in line with the market. Altogether, the portfolio operated at a 21% margin on over $19.1 million of revenues.
A well-established family owner/operator had maintained the properties in good shape but decided to divest following the death of the matriarch and patriarch of the family. A Midwest-based real estate investment group stepped in to buy the portfolio for $32.3 million, or $84,300 per bed/unit, at a 12.5% cap rate. They retained an experienced Illinois-based operator that will take in about $1 million in management fees.