We have written about the dilemma faced by many 40-plus year-old skilled nursing facilities, that cannot compete with those newer all-Medicare facilities with all the bells and whistles (think Mainstreet). Should they convert to low-income assisted living facilities, for which there is and certainly will be a need? Or will the space be repurposed for something other than senior care? For Steve Thomes of Blueprint Healthcare Real Estate Advisors and his most recent transaction, it was the latter.
Mr. Thomes sold a vacant 82-bed skilled nursing facility in Melrose, Massachusetts for $3.6 million, or $43,902 per bed. But instead of being closed due to survey issues, lawsuits, physical dilapidation, etc…this one closed amicably. Prior to the transaction, the real estate owner and the operator agreed to shut the facility down in order to consolidate regional operations. The building was built in 1966 and last renovated in 2000, but was in fair condition. As the residents were relocated, Mr. Thomes sold the empty facility to a regional hospital system looking to expand its operations.
