Memory Care SNF Sold to Institutional Investor
Senior Living Investment Brokerage flocked to Iowa (no, not to launch a bid for the Presidency) to sell a 56-bed skilled nursing facility in West Des Moines. This facility stands out in that it exclusively serves Alzheimer’s and dementia patients. Occupancy at the time of the sale was 86% with a 94% private pay and 6% Medicare census. We don’t hear of figures like that often for a skilled nursing facility. The selling group of investors had realized their investment objectives and decided to sell the facility to an institutional investment group based in California. A national company with a strong presence in the Midwest will operate going forward. Nick Cacciabando and Jeff Binder handled... Read More »
SLIB Heads Southeast to Sell Sunlink SNF
A 100-bed skilled nursing facility in the affluent northern Georgia town of Ellijay was purchased by a private Northeast-based group looking to expand their current Peach State presence. Being the only facility in an area with a growing number of retirees, this SNF was consistently well occupied above 90%. Plus, once the adjacent hospital relocated in 2016, this 50-year old facility was able to expand into much of the old building, adding more resident rooms, a senior day care center, new administrative offices and outpatient rehab. It also operated at a solid 14% margin; pretty good these days. Its previous owner, Sunlink Health Systems Inc., was looking to redeploy capital and focus on... Read More »
New York Real Estate Firm Enters SNF Market
Patrick Burke of Senior Living Investment Brokerage sold a pair of southern skilled nursing facilities to a Northeast-based real estate investment firm. Totaling 243 beds, the facilities were built between 1986 and 1990 and combined for 75% occupancy. The seller, an independent owner/operator, decided to exit the long-term care industry, after the problems started mounting at the Kentucky facility. Litigation concerns and rising insurance premiums caused cash flow to plummet at the location. The Tennessee facility was essentially operating at breakeven, and combined, they brought in nearly $14.1 million in revenues. Around 36% of the census came from private pay and Medicare patients (not... Read More »
Private Equity Firm Expands Portland Portfolio
A Southern California-based private equity firm added to their Portland, Oregon portfolio with the addition of a 38-unit assisted living community. Built in 2011, the small community was previously owned by a local operator who will be using the proceeds to invest in other real estate assets. It was 89% occupied (a solid figure these days) and operated at a 34% margin on under $2.5 million of revenues. So, there is some room for improvement. Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage handled the transaction, which resulted in an $8.5 million, or $223,700 per unit, purchase price and a 10.0% cap rate. Read More »Schedule a demo
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