Senior Living Investment Brokerage shot out of the gates in the second quarter, announcing three closings for skilled nursing facilities across the country. First was the sale of a 105-bed SNF in Pueblo, Colorado, which was previously owned by an East Coast-based regional owner/operator that was divesting the asset to focus on its core markets. Built in 1964 with renovations and expansions in 1982, 2008 and 2018, the facility was licensed for 120 beds. Dubbed Prestige Care Center of Pueblo, the facility received several offers from buyers before a California-based owner/operator with an established presence in Colorado was selected. Vince Viverito and Nick Cacciabando handled the transaction.
Next, Ryan Saul sold Bayside Terrace in Waukegan, Illinois (Chicago MSA). Built in 1973, Bayside is a licensed Specialized Mental Health and Rehab Facility (SMHRF) that provides skilled nursing and psychiatric rehab services for those with a primary diagnosis of mental illness. It has 164 licensed beds but features 84 operational beds. By reducing the licensed bed count to that level, the state of Illinois implemented a program effective January 1, 2025, that increased the Medicaid rate dramatically. Once implemented, cash flow should improve from a loss of $370,000 to a positive $1.9 million. Revenues totaled $4.33 million as of March 2024, and occupancy was 92% based on operational beds.
The seller was a private owner looking to clean up their estate. Saul secured a private, regional owner looking to expand its footprint in the state as the buyer, for a price of $4.6 million, or $54,800 per bed.
Finally, Saul, Cacciabando and Patrick Burke handled the sale of a 50-bed skilled nursing facility in Tennessee. Built in the 1980s and early 1990s, the facility was 69% occupied based on operational beds. It operated just below a 5% margin on more than $4.5 million of revenues, which may improve under new ownership. A local partnership that leased the asset to a Tennessee operator exited the local market with the sale to a regional group that was looking to grow in the state. The purchase price was not disclosed.
