A brand-new skilled nursing facility changed hands in central Texas, with the help of Nick Stahler and Austin Diamond of The Knapp-Stahler Group at Marcus & Millichap. Opened in 2019, the 88-bed facility was built as a replacement property by its regional owner. The pandemic took a toll on operations. Occupancy was 50%, and there was some positive cash flow, but the facility was heading towards stabilization. Given its newer vintage and lack of new competition in the area, we imagine once stabilized, it could operate at a healthy margin. The facility is also enrolled in QIPP, which should help.
Another regional owner with a presence in the state bought the facility for $7.0 million, or $79,500 per bed. This is the second closing of the year for the Knapp-Stahler Group, which has spent the last year building a national brokerage firm, with Mr. Stahler focusing on the West Coast and Michigan-based Jim Knapp concentrating on East Coast deals.
