Diversified Healthcare Trust‘s divestment strategy certainly wound down in 2020, but nine more senior living properties have so far sold this year. The most recent closing was for a 137-unit/bed rental CCRC in North Platte, Nebraska, which according to the REIT’s third quarter supplemental report sold for $3.0 million, or $21,900 per unit/bed. Built in stages from 1988 to 1997, the community has grown to include 68 skilled nursing beds in 62 units, 57 assisted living beds in 42 units and 27 independent living one-bedroom units. Occupancy was around 80% in May but began to improve throughout the summer until a COVID outbreak at the end of September.
The non-core property was marketed in the fall of 2019 and went under contract this March. However, as the pandemic was setting in, the deal stalled. The Nebraska-based regional owner/operator buyer stayed under contract, and both parties moved forward again in August. Despite a September outbreak, which unfortunately saw at least 37 residents and eight staff members diagnosed with COVID (and four deaths), the deal eventually closed in November. Brad Clousing, Jason Punzel and Jeff Binder of Senior Living Investment Brokerage handled the transaction.
Mr. Binder and Patrick Byrne also represented National HealthCare Corporation in its sale of a 282-bed skilled nursing facility in Town & Country, Missouri. We covered the deal earlier this week, which detailed NHC’s efforts to replace the 50-year-old facility with a brand-new senior living community. The project ran into zoning and planning problems earlier this year, so that, along with the several years of census and quality of care challenges, led NHC to seek a sale. SRZ Management bought the property and plans to continue operating it as a SNF, with some improvements to be made, we’re sure.
