Nick Stahler and Austin Diamond of The Knapp-Stahler Group at Marcus & Millichap sold a skilled nursing facility in Tyler, Texas for $7.5 million, or $62,500 per bed. The 120-bed facility was built in 1982 and is situated on 3.75 acres. It had historically experienced difficulty with occupancy, but the pandemic worsened the situation, bringing occupancy down to the mid-50s at the time of the transaction.
Despite those challenges, the seller, a regional Texas owner/operator, managed to maintain a strong patient mix and positive cash flow. In the last year, SNFs with solid operations generated healthy interest from investors, and the Knapp-Stahler Group produced multiple offers for the seller, which plans to utilize the proceeds from this sale to build another senior care project in Texas. The ultimate buyer was a large regional owner/operator that was selected due to its proven track record and established presence in Texas and the Tyler submarket.
