All In, In Alabaster, Alabama
A tenant bankruptcy brought in a new operator and ultimately a new owner at a 198-bed skilled nursing facility in Alabaster, Alabama. Originally built in 1972, this SNF was historically above 90% occupancy with cash flow exceeding $1.5 million. However, licensure issues led to a drop in both census and operating margin (and combined with other reasons, bankruptcy) for the previous tenant, a regional operator. The owners of the real estate, two private families, were also in bankruptcy but had court-approval to sell the asset. When the tenant decided to vacate the property, the eventual buyer, a private investor from New York, stepped in to operate for six months before closing on the sale... Read More »
Two Transactions From Marcus & Millichap
Two separate teams from Marcus & Millichap announced transactions so far this month. First, the Knapp Group Seniors Housing Advisors, led by Jim and Justin Knapp, sold an 88-bed skilled nursing facility in the Detroit, Michigan area for approximately $7.0 million, or $80,000 per bed. Built in 1998, it was experiencing declining occupancy under its not-for-profit ownership. However, a local buyer with a history of turning underperforming SNFs into five-star facilities saw an opportunity and pounced. Then, Tony Cassie and Sam Thompson facilitated the sale of a 238-unit senior living community in Westminster, Colorado (Denver MSA). Its previous owner built the community in stages from... Read More »
Not-For-Profits Swap Minnesota Senior Living Communities
Ray Giannini and John Klement of Marcus & Millichap’s Milwaukee Seniors Housing Group represented a not-for-profit in the sale of its two senior living communities in Buffalo, Minnesota (Minneapolis MSA). The buyer? It was another not-for-profit. The portfolio includes one purpose-built memory care community with 24 units (48 beds) and one repurposed 67-unit assisted living community, both built (or repurposed) in the early-1990s, centrally located and well occupied. They sold for a combined $9.3 million, or $102,200 per unit, with an $11.6% cap rate. Read More »
There’s a New Investor in the Skilled Nursing Market
Northwind Group, a Manhattan-based real estate owner/operator, entered the skilled nursing market in a major way, announcing its $182.5 million acquisition of eight skilled nursing and assisted living properties from a large institutional seller. All of the facilities, which include seven skilled nursing facilities (with 1,037 beds) and one 110-unit assisted living community in Ohio and northern Kentucky, are operated by Ohio-based Carespring Health Care under a new long-term triple-net lease. Occupancy averaged 92% across the portfolio, and revenues topped $100 million. To help fund the deal, KeyBank underwrote and closed a $132.7 million loan, in a transaction led by Henry Alonso and... Read More »Schedule a demo
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