After making seven acquisitions in 2019, Strawberry Fields REIT has finally reentered the acquisition arena in 2020, announcing its purchase of a 107-bed senior care facility in Danville, Kentucky. We imagine some time had to be spent on managing and consolidating its growing portfolio, and the skilled nursing industry has been preoccupied in the last several months with the COVID-19 crisis, but it is good to see them back buying again, bringing their current portfolio to 76 senior care facilities.
Previously owned and operated by several individuals (dba Marlin K. Sparks Management Company, Inc.), the Danville facility consists of 90 skilled nursing beds, 16 assisted living beds and one independent living cottage. Services at the facility include speech therapy, respiratory therapy and gait and balance training, along with a variety of group activities. Occupancy was strong at the SNF, rising to 95% with a 9% Medicare, 72% Medicaid and 18% private pay/insurance census. But the assisted living beds were 70% occupied.
Ownership decided to retire, and Strawberry Fields will bring in A&M Healthcare to operate going forward under the Landmark brand. A&M already operates other facilities in the area, including one 15 minutes away in Lancaster, Kentucky, so finding synergies and cost savings should be achievable.
