Marcus & Millichap facilitated the divestment of Colfax Health and Rehabilitation Center in Wisconsin on behalf of a local not-for-profit seller. Built in 2013, the facility originally featured 28 skilled nursing beds, 26 assisted living beds and 12 RCAC units within a 52,000-square-foot space, all comprising private rooms. The community underwent a strategic transformation.
Post-conversion, the assisted living component expanded by an additional 28 beds, resulting in a total of 66 assisted living and RCAC units. The skilled nursing beds were phased out, with the corresponding license transitioned to a CBRF license. Operating at a substantial loss, with revenues hovering around $1.5 million (reflective of the modified operational structure without the skilled nursing beds), and an occupancy rate of around 70%, the not-for-profit entity made the decision to divest after sustaining losses for multiple years.
The buyer, a regional group, has plans to optimize operational efficiencies by reducing expenses and implementing rate adjustments. The financing for this transaction was secured through a conventional loan from a regional bank. Ray Giannini of Marcus & Millichap facilitated this transaction.
