After a long process that saw multiple buyers pull out from the deal, the sale of Sarah Neuman Skilled Nursing Facility in Mamaroneck, New York, has closed with the help of Mark Myers at Kiser Group. Owned by a religious not-for-profit organization, The New Jewish Home, the facility features 301 beds and was losing money. Myers had previously facilitated the 2016 sale of the seller’s 744-bed SNF in The Bronx for $110 million and, earlier this year, the sale of a 300-unit independent living community on the same Bronx campus for $40.5 million.
The transaction faced some hurdles, including a challenging financing environment and stringent regulatory requirements from New York State that seek to limit the transfer of not-for-profit healthcare properties to for-profit ownership. The property was initially under contract for $84 million. However, rising interest rates caused the first buyer to withdraw. A second buyer also faced financing challenges and lowered their offer to $72 million. Then, Myers and the Kiser Group team successfully negotiated the transaction with a third buyer, securing a final sale price of $76 million, or $252,500 per bed. Myers also arranged interim financing support, including a $5 million loan from the independent living property buyer, to ensure continuity during the approval process.
The private buyer has significant SNF holdings across the country and showed considerable patience as it took over three years for the state to issue the Change of Ownership (CHOW). Myers closed this sale in conjunction with Walker & Dunlop and his former partners, Josh Jandris and Brett Gardner, who are now at Cushman & Wakefield.
