Fresh off an active 2023, Ryan Saul of Senior Living Investment Brokerage kicked off 2024 with a large closing in Chicagoland. A private, family-run company was looking to exit the skilled nursing space, prompting the sale of its three SNFs with 491 total beds for $51.2 million, or $104,300 per licensed bed. On a functional bed basis, the per-bed price rises to $111,500. The portfolio consists of Wauconda Care (149 beds), Fairmont Care (186 beds) and Oak Brook Care (156 beds). They are the premier nursing homes in the area and hold five-star ratings from CMS, plus JCAHO (Joint Commission on Accreditation of Healthcare Organizations) accreditation.
Occupancy was healthy at 84%, with strong quality mixes. And each of the facilities, albeit built in the 1950s and 1970s, were renovated in the last 15 years. Wauconda Care was also recently expanded and will be issued another 11 licensed beds in 2025. It boasted an attractive 48% quality mix, too. Total revenues for the portfolio exceeded $54.5 million, with a 3.5% EBITDAR margin. That could be improved and presents a great opportunity for a buyer with scale.
Alta Rehab, an Illinois-based provider with over 5,000 beds in the state, emerged from multiple other offers as the portfolio’s buyer. Oxford Finance provided the acquisition financing.
