An older skilled nursing facility sold in Vincennes, Indiana, with multiple offers ultimately yielding an Indiana-based owner/operator as the buyer. Built in 1965, GentleCare of Vincennes features 60 licensed and 52 functional beds. It boasted one of the longest-running five-star ratings from CMS, and occupancy was around 80% with a 70% quality mix. Those kinds of numbers would intrigue many investors. The facility also operated at a decent 11% margin on nearly $3.95 million of revenues, based on 2020 figures.
However, its mom & pop owners were looking to retire, bringing on Ryan Saul of Senior Living Investment Brokerage to sell the property. The Strategies, an Indiana-based provider with other facilities in the state, paid $4.1 million, or $78,800 per bed, at a 10.3% cap rate based on the 2020 financials. They plan to modernize the facility’s systems through their centralized office and achieve economies of scale. They will also look to keep building occupancy while maintaining the impressive quality mix.
