Senior Living Investment Brokerage’s Matthew Alley closed another transaction in Texas on behalf of an owner/operator based in the Lone Star State. The deal featured two skilled nursing facilities in the towns of Hondo and Kerrville. Community Care Center of Hondo was built in 1967 with 75 beds. It was 79% occupied. While Waterside Nursing & Rehabilitation in Kerrville was built in 1968 with 179 beds. It was 51% occupied. Combined, they generated $2.08 million of EBITDAR on $13.55 million of revenues, for a healthy 15% margin. The facilities are also enrolled in QIPP which provides for additional revenue not already in the financials.
Strawberry Fields REIT paid $15.25 million, or $60,000 per bed. Both these facilities will be leased to the Tide Group led by its founder Brian Ramos. The lease is for an initial 10-year period and includes two five-year tenant options on a triple-net basis. Additionally, the lease will increase Strawberry Fields’ annual rents by $1.525 million and is subject to 3% annual increases.
Separately, the REIT also purchased two skilled nursing facilities in Tennessee for $4 million, or $16,100 per bed. The deal featured facilities in Kingsport (67 beds) and Maryville (181 beds). Formerly owned by the not-for-profit Asbury Communities, the facilities were associated with a lease purchase option that Strawberry Fields entered into on January 1, 2024. The Kingsport facility was added to an existing Infinity of Tennessee Master Lease and the Maryville facility was leased to a third party tenant. Collectively these facilities increased the REIT’s annual rents by $400,000 and are both subject to 3% annual increases.
