Strawberry Fields REIT, a large owner and lessor of long-term acute care hospitals, skilled nursing facilities and assisted living communities across the country, added six more SNFs to its portfolio, at a cost of nearly $81 million. The portfolio totals 521 beds and are located in two states. The one Kentucky facility has 65 beds and was built in 1968 in Kuttawa. It will join the REIT’s Landmark portfolio, which has locations throughout Kentucky, as well as in Texas, Oklahoma, Illinois and Michigan.
The other five properties are spread across Tennessee and will be branded as “The Waters” facilities, with Infinity Healthcare of Tennessee providing consulting services. Two of the locations were built in the 1960s, including a 90-bed facility in Sweetwater and a 72-bed facility in McKenzie. One 2005-era facility has 84 beds in Johnson City, and two other facilities were built in the last five years, including a 90-bed facility in Memphis and a 120-bed facility in Bristol, near the Virginia border.
The purchase came to about $155,500 per bed. That’s quite a high figure for SNFs, but we imagine some of those newer facilities have higher Medicare and private pay censuses, which can help drive strong cash flow.
