Nick Cacciabando and Jeff Binder of Senior Living Investment Brokerage announced the sale of two skilled nursing facilities in the state of Kansas, representing a group of local investors in the transaction. In fact, this was SLIB’s fifth and final sale for one of the investors, who is retiring from the business.
Blue Valley Senior Living of Blue Rapids and Cambridge Place Senior Care of Marysville comprise a total of 115 beds and sold for a combined purchase price of $4.1 million or $31,700 per bed. The 78-bed Cambridge Place, which was built in the early 1990s, also offered assisted living services in 24 beds. Blue Valley was built in stages in 1972 and 1988 and features 37 dually certified beds.
Both have historically performed well, but due mainly to staffing related challenges, the 2021 performance was down. However, operations had been trending in a positive direction more recently. As of March 31, 2022, occupancy was at 79%, and the facilities were producing around $260,000 of trailing-three-month EBITDAR on combined revenue of $7.58 million.
Recover-Care was the buyer, growing its already large presence in Kansas and looking to add more operations in the state. Earlier in 2022, the company also purchased Medicalodges Gardner, an 82-bed skilled nursing facility in Gardner, Kansas, for $4.6 million, or $56,100 per bed. The facility was operating at a 4% margin on $4.43 million of revenues at the time, and was 70% occupied. Recover-Care also owned a rehab hospital in Gardner (with a skilled nursing license), so it had hoped to capture the local market with this acquisition. Senior Living Investment Brokerage handled that transaction as well.
