Daniel Morris, formerly of CBRE but now Founding Partner of Plains Commercial Real Estate in charge of seniors housing investment sales and leasing, has arranged the sale of a small skilled nursing facility in Fairland, Oklahoma. Featuring 29 beds, the facility was built in the mid-1960s with a small footprint of just about 6,400 square feet. It was operating just around breakeven, and occupancy was historically close to 70%. In addition, the operator was able to keep the facility COVID-free throughout the pandemic.
This was the only facility of the long-term owner/operator seller, who bought the property in 2011 for $561,000, or $19,300 per bed, according to our M&A deal database. However, they are now exiting and retiring from the industry. Selectis Health (formerly Global Healthcare REIT) was the buyer. That may surprise some, due to the facility’s size, but the addition will complement Selectis’ existing operations in nearby Quapaw, just 20 miles away. Selectis will also complete renovations in the next 60 days and expects a full year of accretive earnings once the facility achieves its target census. Excluding broker, loan origination fees and closing costs, the purchase price came to just under $800,000, or $27,500 per bed.