Montgomery Intermediary Group announced a couple of transactions at the end of October. First, Andrew Montgomery sold a 120-bed skilled nursing facility in southern Illinois in a value-add deal. Built in the 1960s and 1970s, the facility had a roughly 50% Medicaid census, with between 30% and 35% private pay and 5% to 10% Medicare. It was losing money. Jeremy Warren of MIG helped finance the deal, as well, arranging 80% loan-to-cost financing with a 20-year term and a variable rate in the low-7s. He secured the loan from a regional lender, and this was the fifth building that Warren financed in the past 45 days.
Then, Montgomery sold a 38-unit assisted living community in a small Missouri market. He represented a family owner that was exiting the business and sourced the buying group. Occupancy was nearly full, with a 90% private pay census. But the incoming owner believes it can make improvements to the operating margin. The asset was built in the 1990s.
