Knapp Group Closes Maryland and Michigan Transactions
The Knapp Group of Marcus & Millichap, led by Jim and Justin Knapp, closed two deals in succession, one in Maryland and one in Michigan. First, after yielding five offers that pushed the selling price $1.75 million over list, Messrs. Knapp sold a 145-bed skilled nursing facility in Burtonsville, Maryland, for around $17.25 million, or just under $119,000 per bed. That price is impressive, considering the 20-year old facility was losing over $500,000 annually. Occupancy was actually above average at 85%, but given that the current average of the national skilled nursing census just plunged to a new record-low of 81.7%, according to NIC, “above average” doesn’t mean what it once did. The... Read More »
Checking in on Chattanooga
Last month we wrote of the sale of a Chattanooga, Tennessee independent living community to a joint venture between Atlas Senior Living and Veritas Senior Living. Now, we can report that Richard Lynn of Marcus & Millichap represented both the buyer and the seller in the transaction, with an assist from Joseph McKibben, who was the broker of record in Tennessee. The community was originally a hotel but converted in 2008 to feature 136 units. It currently is a low-cost provider in the area, with rents ranging from $1,200 to $1,500 per month, but that’s where the buyers see upside. They plan on making some cosmetic renovations as well. Occupancy was around 85% and with a $3.6 million (or... Read More »
Going Out On Top
We’ve been saying this since 2014, but it seems to be a good time to sell a seniors housing property. Prices are still near record highs in the assisted living market, at $221,250 per unit in 2017, according to the 23rd Edition of The Senior Care Acquisition Report. The M&A market, even during the normally quiet summer months, is as frothy as ever, with 52 deals announced in the third quarter, so far. But even these reasons aside, a local partnership in Wisconsin is truly exiting the market on top, with its 60-unit assisted living community fully occupied (with a 100% private pay census) and operating at a 31% margin. Built in stages in 2007, 2009 and 2014 in the affluent Green Bay... Read More »
Despite Declining Operations, Minnesota Skilled Nursing Facility Sells
It looks like Ray Giannini (of Marcus & Millichap) isn’t taking a vacation this summer, as he just closed the sales of a skilled nursing facility in Minnesota and a senior living community in Iowa. The Caledonia, Minnesota facility has a long history serving the health care needs of the area. Originally opened in the early 1900s as a hospital, the building expanded in 1962 and 1976, and now features 50 skilled beds, as well as a 16-unit assisted living community (added in 1987). Plus, the SNF was extensively renovated in 2012 at a cost of $1.4 million. Services there include physical, occupational and speech therapy programs, along with respite and hospice care. However, while the AL... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
