The final three assets part of the Guardian Healthcare portfolio that fell into bankruptcy have sold after receiving HUD TPA (Transfer of Physical Assets) approval. Ryan Saul and Toby Siefert of Senior Living Investment Brokerage handled the sale.
The whole eight-facility portfolio was originally marketed by Senior Living Investment Brokerage in the fall of 2023 and went into bankruptcy after the buyer’s operator was not approved by the state. Still, the original buyer eventually became the stalking horse bidder. The operations of eleven other facilities were also slated for transfer. Guardian cited “lingering effects of COVID, labor shortages, rising wage inflation, increased reliance on high-cost agency labor, inadequate Medicaid reimbursement and mounting provider assessments in Pennsylvania,” as its reasons to file for Chapter 11 bankruptcy protection.
We first wrote of the deal in October 2024 when the U.S. Bankruptcy Court for the Western District of Pennsylvania approved the sale of eight Guardian-owned skilled nursing facilities in Pennsylvania (seven facilities) and Fairmont, West Virginia, to GBK Eight LLC,which appears to be an affiliate of Noble Care. Additionally, the Court agreed to the operational transfer of 11 leased facilities, two of which include personal care homes, to Oxford Valley Health.
In December, the five non-HUD facilities sold for $11 million, or $36,800 per bed. Those facilities include Belair Healthcare and Rehabilitation Center in Lower Burrell, Eldercrest Healthcare and Rehabilitation Center in Munhall, Guardian Healthcare Meadowcrest in Bethel Park, Oak Hill Healthcare and Rehabilitation Center in Greensburg and Guardian Healthcare Highland View in Brockway. They total 299 beds and were built between 1964 and 1992, with subsequent additions completed at each location. Occupancy was 79%, but the five facilities were sustaining a significant operating loss.
Now, the remaining three facilities that required HUD TPA approval have sold for $45 million, or $156,250 per bed. They included Beaver Valley Healthcare and Rehabilitation Center in Beaver Falls, Pennsylvania, Havencrest Healthcare and Rehab in Monongahela, PA (both Pittsburgh MSA), and Fairmont Healthcare and Rehab in Fairmont, West Virginia. Built between 1962 and 1985 with subsequent additions at the Pennsylvania locations, they included 288 beds and were 86% occupied. The three properties were also profitable and generated more than $31 million of combined revenues, with the bulk of the profits coming from the West Virginia property. That helps explain the higher per-bed price for this group of properties.
