After operating it for a couple of years, Tutera Senior Living took over ownership of a skilled nursing facility in receivership in Derby, Kansas. Nick Cacciabando of Senior Living Investment Brokerage handled the sale on behalf of the receiver.
This small facility, which features 45 beds, was built in 1976. A few years ago, Virginia-based alternative asset manager Mooring Financial purchased the distressed HUD debt on the property. This was their only senior care asset and decided to exit the facility. Operations had declined during the pandemic, and the facility was losing money at the time of the sale with an occupancy of around 80%.
During that time, the facility had an initial buyer that dropped out following due diligence. Nevertheless, the in-place operator, Tutera, emerged as another buyer, agreeing to pay $1.325 million, or $29,400 per bed. The lender approved of the transaction as well, cementing the smooth transition.
