A skilled nursing facility with 130 beds recently sold in North Carolina. It was 53% occupied and not stabilized at the time of sale. According to LevinPro LTC, the purchase price was one of the highest per-bed prices we have seen in the state, at $21 million, or $161,500 per bed. The seller, a North Carolina-based owner/developer that had owned the facility since its construction in 1991, was divesting to exit the business and retire. The company that was managing the facility at the time of the sale was a multi-generational, one-state operator with multiple facilities in its portfolio.
Despite volatility in the Medicaid rate, and capex needs, Stan Klos III of 3G Healthcare Real Estate successfully got the deal across the finish line. The seller realized a 50% increase in value compared with previous offers. The buyer was a regional owner/operator, and a lease buyout was negotiated with the old operator.
