The Knapp-Stahler Group at Marcus & Millichap closed a couple of skilled nursing deals on the eve of the eCap conference in Miami, so a celebratory pina colada by the pool sounds appropriate. First, Nick Stahler and Austin Diamond sold an 85+ bed facility in East Texas to a regional owner/operator that was selected for its proven track record and ability to close “all cash” in an expedited time frame. The facility had historically struggled with occupancy (it was in the mid-50% range at the time of closing), and rising expenses due to inflation created further challenges. There was clearly room for improvement in those areas, plus in the payor mix and in additional revenue via enrollment in the QIPP, so multiple offers were presented to the seller, a single-asset owner/operator. The purchase price was not disclosed.
Next, Andy Van Zee and Justin Knapp closed the sale of a 100-bed skilled nursing facility in Des Moines, Iowa. This top-tier facility boasted a five-star rating from CMS, a strong quality mix, stable occupancy and positive cash flow with one of the top Medicaid rates in the state. With those qualities, we imagine the facility commanded top-dollar on the market, and it apparently set a strong price-per-bed comp within the submarket.
The seller, a local owner/developer/operator, ultimately selected Chicago-based investment firm Birchwood Healthcare Partners as the buyer. Birchwood stood out due to its operational experience in Iowa and its desire to grow in the Des Moines market. The transaction was one of the first few CHOWs completed under Iowa’s new administrative rules.
