Ryan Saul and Jeff Binder of Senior Living Investment Brokerage closed on the sale of a 70-bed skilled nursing facility in central Illinois at the start of November. Built in 1970 but with an effective age of 25 years, the facility was in good condition at the time of the sale. Occupancy was trending positively at 75% (hopefully that continues heading into winter) and the quality mix was 30%. But stabilized occupancy was around 87%, with margins in the mid-teens.
Its regional owner/operator, which had operated the facility for several years, was looking to exit a non-core asset, while the undisclosed buyer was looking to expand their presence in central Illinois. No other details were disclosed, but CIBC Bank USA closed a $5 million loan to fund the deal. The loan came with a five-year term loan, a potential earn-out and a $750,000 working capital line of credit. Fritz Kieckhefer and Kyle Doran handled the financing for CIBC.
