A large portfolio of senior care facilities traded in Ohio and Kentucky, commanding a strong price, we believe, in the process. Connor Doherty and Ryan Kelly of Blueprint advised on the sale of the 983-bed, seven-property portfolio, which features mostly skilled nursing beds and some assisted living units. At the time of sale, the portfolio was generating strong cash flow and benefitting from recent Medicaid rate increases and private room incentive payments, boosting both current income and long-term value. According to those familiar with the listing, the operating margin may have also topped 12% or 13% and must have generated significant cash flow.
The assets are within a 90 minute drive of one another, supporting operational and geographic synergy. Five of the buildings feature more than 100 beds, providing scale and market presence within their respective submarkets. So, it was an attractive opportunity, to say the least, and we believe it may have sold for more than $150,000 per bed given the strong operations, the improving reimbursement environment in both states and similar sales in the region according to our M&A database.
The buyer was an investor well-positioned to leverage the portfolio’s scale and regional footprint to expand its presence in Ohio’s seniors housing space.
