Affiliates of TL Management and Fortis Business Holdings have acquired a 240-bed skilled nursing facility in Brooklyn, New York. Public records first revealed the deal in April 2019, revealing Fortis acquiring a 50% interest, Zevi Kohn (of TL Management) a 40% interest, and Eliezer Jay Zelman the remaining 10% interest. The facility was previously owned by the not-for-profit RiseBoro Community Partnership. Occupancy was consistently in the mid-90 percent area, with a majority Medicaid census. The most recent financials from 2017 show a loss of nearly $3.9 million, even with that strong occupancy. But as soon as TL took over management, the facility had positive cash flow within months.
The purchase price came to $58.8 million, or $245,000 per bed, a very high figure for the skilled nursing sector but given the real estate value and relatively new vintage (built in 2001, which is new for SNFs, especially in New York City), it makes a little more sense. That price includes nearly $13.08 million in assumed liabilities. People’s United Bank underwrote a $40 million acquisition loan (selling $10 million of it to Bryn Mawr Trust), with a 10-year term and 25-year amortization to fund the deal.
