After selling eight skilled nursing facilities in Connecticut earlier this year, California-based Summit Healthcare REIT further pared back its portfolio by divesting three SNFs in San Bernardino County, California. The portfolio comprises 191 beds and sold for $30 million, or $157,000 per bed. The buyers were affiliates of the current operator.
The sale of this portfolio yielded an internal rate of return of over 50% for Summit and closed without the aid of an outside brokerage firm. Summit’s portfolio now comprises interests in 36 senior living communities throughout 11 states.
In May, Summit had sold eight skilled nursing facilities totaling 1,106 beds in Connecticut for $60 million, or $54,250 per bed. Those facilities were built between 1966 and 1990 and were anticipating a large Medicaid rate increase to take effect in July. iCare Health Network emerged from more than 10 offers to acquire the portfolio, subject to a triple-net lease with the existing operator that had an additional 8.5 years remaining on the term.
