A Northeast owner/operator entered the Kentucky skilled nursing market with their purchase of an 85-bed facility about ten miles north of Lexington. As they enter the state, the seller, a local owner/operator, is looking to exit the SNF industry altogether. It’s a complicated business, and getting more complex to manage by the day, so exits like that have been fairly common in recent years.
Built in 1977 but well maintained with several updates to the physical plant in recent years, the facility boasted above-average occupancy of 92%. The operating margin was less impressive, at 2.3% on approximately $6.15 million of revenues. But that’s where the new owner can add value, if all goes to plan. They expect to create efficiencies mainly through liability insurance and economies of scale. For the opportunity, the owner/operator paid $5.3 million, or $62,350 per bed. Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage handled the transaction.
