Ryan Saul of Senior Living Investment Brokerage secured a strong price for a skilled nursing facility in Cincinnati, Ohio. Built in 1965, the facility was originally licensed for 199 beds, but the decision was made to strategically reduce the beds to 167 to save on provider tax and improve the Medicaid rate.
The facility struggled for many years. It was purchased by a Chicago-based investor in 2014 that has subsequently gone bankrupt. The lender took the property back in 2018 due to poor operational management and financial performance, and it ran the facility through receivership, employing a number of managers between 2018 and 2023. The most recent operator was finally able to improve clinical outcomes and financial performance, bringing the facility from a steep operating loss to close to breakeven. In 2024, the facility generated about $180,000 in EBITDAR on $14.025 million of revenues, with 82% occupancy.
A regional skilled nursing owner/operator stepped in to buy the facility for $14 million, or $83,800 per bed. We know it was a long, arduous ownership tenure for the lender/seller, but we imagine they were pleased with that price.
SLIB’s Brad Clousing and Dan Geraghty also facilitated the sale of Bay Port of Fort Walton Beach, a 119-unit assisted living/memory care community in Fort Walton Beach, Florida. Built in 2021, the community was well occupied at 90% and competes well in the local market. Its local hospitality owner was divesting the asset because it no longer aligned with its core investment strategy, and it was its only seniors housing asset. The buyer was a partnership between an institutional capital provider and a Southeast regional operator. No purchase price was disclosed.
