Advantage Living Centers recently divested six of its senior care facilities in southeastern Michigan, with Walker & Dunlop’s Josh Jandris and Mark Myers handling the transaction. An undisclosed, New Jersey-based regional owner/operator bought the properties, which total around 750 beds of primarily skilled nursing, with some assisted living units as well. Ranging in size from 100 to 179 beds, the properties were built more than 50 years ago. Prior to the pandemic, occupancy had been in the mid-70s and fell to the low-60s in 2020. The properties still brought in positive EBITDAR of $1.4 million on nearly $50.7 million of revenues.
To fund the deal, VIUM Capital provided a $58 million bridge-to-HUD loan in an A/B structure, with $54 million comprising the A and $4 million making up the B portion. Funds were provided for acquisition costs and cosmetic improvements, and to add a short-term rehab in one of the buildings and other specialty units. The loan funded 90% of the acquisition costs, putting the purchase price above $60 million, or more than $80,000 per bed.
