Marcus & Millichap’s Mom & Pop Sale
A local mom & pop sold its only skilled nursing facility in Lodi, California, and hired Rob Reis of Marcus & Millichap to seal the deal. Built in stages between 1956 and 1964, the facility features 86 licensed beds in 49 units, split between 14 private rooms, 27 shared rooms and six three-bed wards. There was also a secure dementia ward comprised of 18 beds. Occupancy was consistently in the mid-90s, with an approximate 70% Medi-Cal census, but there was also strong local competition, so cash flow was negative. The new owner should be able to take advantage of the steady income from the dementia unit, the quality physical plant and implementation of PDPM later this year to turn... Read More »
Cascade Capital Continues to Grow
Cascade Capital Group announced a few large transactions totaling 15 skilled nursing and assisted living facilities with more than 1,550 licensed beds for a combined purchase price of $130 million. In one of the transactions, Cascade purchased eight skilled nursing facilities in California that are being leased to The Ensign Group and The Providence Group, with the majority going to Ensign. Five have been transitioned and three more will be transitioned over the next few months. Sector Financial provided senior financing for the acquisition and Formation Lending Group provided the mezzanine debt. In the second transaction, Cascade acquired five skilled nursing facilities and two assisted... Read More »
Original Owner Exits Two AL Communities in Illinois
The original developer of two assisted living communities totaling 135 units in Illinois (St. Louis MSA) is finally exiting the assets, after more than 10 years of ownership, with the help of Mike Surak and Matthew Andriano of Marcus & Millichap and Mark Myers and Joshua Jandris of IPA Seniors Housing. Operated under the Fountains Assisted Living brand, the properties are located in Granite City (built in 2000) and Godfrey (built in 2006), or about 23 miles apart from each other. They were previously owned by a local investment group that featured a large number of individual investors. The out-of-state buyer, an affiliate of Triloma Seniors Housing, will look to use their operating... Read More »
Two Sales Closed by the Knapp Group
Knapp Group Seniors Housing Advisors of Marcus & Millichap closed a couple of sales around the Great Lakes. First, Jim and Justin Knapp teamed up to represent a local owner in their sale of an assisted living community in southeast Michigan, exactly 11 years after helping them initially acquire it. Built in 1987 and recently receiving significant upgrades, the 50-unit community was well occupied (over 90%) and operated at a 20.5% margin. With the new improvements, that margin should only improve. Another local owner/operator paid $6.5 million, or $130,000 per unit (at an 8.4% cap rate), for the property. Then Justin Knapp was the lead advisor in the sale of a 55-unit assisted... Read More »Schedule a demo
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