Senior Care Realty was brought on by a mom & pop in their divestment of a skilled nursing facility in northwest Iowa. The seller had owned the facility for over 50 years, and was the second owner since the facility’s inception. They had plans to retire, leading to the decision to divest.
Built in the 1960s with renovations since then, the skilled nursing facility is in Spencer, Iowa, and comprises more than 80 beds. Occupancy was hovering around 75% at the time of the sale, as a wing was closed during the pandemic and was not yet re-opened. The buyer was a publicly traded company, and the purchase price was $3.55 million, or around $44,000 per bed.
Mark Van Den Broeke handled the transaction and received multiple offers within several weeks. Iowa’s new Medicaid rate increase results in the facility being set to receive over $55 per resident, per day, which added to the facility’s appeal.
We believe the facility to be Spencer Post Acute Rehabilitation, which comprises 82 beds in Spencer, Iowa. Spencer was acquired by The Ensign Group in a joint venture with Standard Bearer Healthcare REIT in May.
