Two small but stabilized senior care facilities in Wisconsin sold to out-of-state buyers. Ray Giannini of Marcus & Millichap handled both transactions. The larger property is a 50-bed skilled nursing facility in the rural town of Shell Lake. Built in 1985 with an addition in 1994, it was 86% occupied with an almost 20% Medicare census. Helping the facility is the fact that it is the only SNF in town and is located next to a hospital. An out-of-state partnership sold the facility for $1.5 million, or $30,000 per bed, at a roughly 12.0% cap rate based on recent trailing financials.
Mr. Giannini followed that up with the sale of a 16-unit assisted living community in Kenosha (Chicago MSA). Built in 1968, the community has 18 beds in 16 units, with an all-Medicaid census. Occupancy was a strong 95%, and the community operated at a 12.5% margin on approximately $540,000 of revenues. Lifecare Homes, Inc., a family owner/operator of more than 10 communities throughout the state, decided to sell this facility as part of a planned exit of the industry. The final purchase price came to $850,000, or $53,100 per unit, at an 8.0% cap rate.
