The owner of a struggling skilled nursing facility in northwestern Pennsylvania looking to sell has decided to add another performing facility to the deal in order to sweeten the pot. In the end, both sold to a New York-based investor with a growing presence in the Keystone State. Toby Siefert and Ryan Saul of Senior Living Investment Brokerage handled the transaction.
The first facility in Erie features 80 beds and was deemed to be non-core due to occupancy being below 50% and cash flow being negative. It was built in 1963 and 1968 and had a union in place. The other facility, located about two and 1/2 hours away in Clearfield, had 240 beds, but only 180 were functional because one floor was vacant. Occupancy was a bit better at 65%, but the facility was producing more than $400,000 in EBITDAR. Built in 1965 and 1973, the facility also had a local union in place.
The New York-based investor saw an opportunity to bring census back to pre-pandemic levels (when the larger facility was very profitable) and add ancillary services to both locations. No purchase price was disclosed.
