The Senior Living Investment Brokerage team of Ryan Saul, Patrick Burke and Toby Siefert put in the hours to work through a bankruptcy sale of a 130-bed skilled nursing facility in Bristol, Tennessee. Originally built in 1986 and 1990, this facility was owned by a regional skilled nursing operator. Over the last couple of years, it faced challenges with occupancy and cash flow, and as a result, both the OpCo and PropCo were placed into bankruptcy for liquidation. In came the SLIB team, which ran an extensive marketing campaign during the height of the pandemic, and despite a few extended deadlines, they found a buyer in a Mid-Atlantic-based regional skilled nursing owner with operating partners in Tennessee.
Annual financials from 2019 show the facility was making over $215,000 in EBITDAR on more than $5.9 million of revenues. Considering occupancy was just 53%, that could certainly be worse, but we don’t know how operations have been affected by COVID. The purchase price of $4.35 million, or $33,500 per licensed bed, included $3.35 million for the OpCo and PropCo plus the assumption of approximately $1 million in bed tax liability.
