Justin Knapp and Andrew Van Zee of the Knapp-Stahler Team of Marcus & Millichap closed the sale of a 29-property skilled nursing portfolio in Iowa on behalf of ABCM, which was exiting the senior care market. Comprising 2,346 total beds, it is the largest SNF portfolio to sell in the state, and by some margin.
Also featuring 326 assisted living units, the portfolio featured mostly four- and five-star rated facilities, with just two exceptions. Favorable Medicaid rate increases also helped improve operations across the board, but the margin could also get better. Some agency staffing was in the process of phasing out, as well.
So, how do you sell a SNF, let alone 29 of them, in the state of Iowa these days after its change to the CHOW process last summer (which we hear is improving, by the way)? First you need an experienced buyer, which turned out to be Cascade Capital Group, a national private equity firm based in Chicago. Second, that buyer needs to have good consultation in the state. So, Cascade chose to work with an attorney group that was involved in the writing of Iowa’s new CHOW process. That will certainly help. And finally, you need some patience, as the new rules delayed the closing of the transaction by months.
In the end, the sale was finalized in September 2024 at just over $36,000 per bed, with no changes in pricing despite the delays.
