Two teams at Senior Living Investment Brokerage announced deals this week, including one in Washington state and another in West Virginia. First, in Washington, Jason Punzel, Brad Goodsell, Vince Viverito and Jake Anderson sold a 54-unit assisted living community in the town of Shelton (on the Olympic peninsula). Built in 2000, it was previously owned by an investment group that was looking to divest its out-of-state assets. Occupancy was decent at 80%, but that could be improved. In the end, a Pacific Northwest owner/operator paid $4.9 million, or $90,700 per unit, for the community and plans to spend more on capital improvements and to increase the number of licensed beds.
Next, Dave Balow and Patrick Burke sold a 72-bed skilled nursing facility in West Virginia. The price was not disclosed, but Omega Healthcare Investors disclosed its purchase of a West Virginia SNF for $13.8 million, which would result in a per-bed price of $190,000 for this facility.
Built in 1979 and 1987, the facility had been family-owned and operated since 1987. But the decision was made to divest the facility in order to focus on their additional, out-of-state seniors housing communities. It is located in the town of Jane Lew, a town of only 400 residents, but the facility has no competition in the county, and its nearest competitor is 15 miles away. That scarcity means occupancy has always been high (at around 88% in 2022), and the facility recently benefited from a Medicaid rate increase up to $325 per day. It operated at a 7% margin, but the Medicaid rate bump would improve that quickly.
SLIB confidentially marketed the asset and procured double-digit offers from a selective national and regional buyer pool. Omega is utilizing its existing operating partner who has rapidly grown its presence in West Virginia. The buyer’s ability to pay in cash further increased its appeal to the seller.
