Buyer Hopes To Turn Around Paxton SNF Performance
A private regional owner/operator purchased a skilled nursing/independent living facility in Paxton, Illinois with major plans to overhaul operations. The facility, built in 1962 with additions in 1975, 1988 and 1995, was owned by a faith-based not-for-profit and originally was built and cared for the local Illinois Knights Templars. However, over the years, the resident makeup has changed, as did the complexities of the skilled nursing reimbursement environment, knocking the facility’s original mission out of line with operating a profitable facility. Adapting to the changes, the not-for-profit’s board hired Heritage Enterprises, an experienced skilled nursing operator, to manage the... Read More »Room To Expand In Port St. Lucie
Senior Living Investment Brokerage’s Brad Clousing successfully sold a 36-unit assisted living community in Port St. Lucie, Florida, that has plenty of room for expansion. Seizing that opportunity was a South Florida-based owner/operator, which acquired the community for $3.18 million, or $88,300 per unit, with an 8.0% cap rate. The seller was a developer who was looking to exit operations after relocating to Minnesota. That said, they left the 17-year old community in fine shape, with 97% occupancy and a 23.5% operating margin on about $1.075 million of revenues, which could still be improved. There is the opportunity to expand with an additional 24 units (36 beds) of memory care, as well... Read More »
Northeast Owner Heads To South Carolina
As an owner/operator was exiting the assisted living industry, and trying to sell its 31-unit AL/memory care community in Santee, South Carolina (situated halfway between Columbia and Charleston), a Northeast-based owner/operator swooped in and purchased it, marking its entry into the state. Shades of 1865…but we digress. The previous owner was based in neighboring Georgia, but took a “hands-off” approach to managing. As a result, the building, although it wasn’t particularly “old” (it was built in 1999 with a recent renovation) and featured a 97% occupancy rate, was only operating at a 17% margin on nearly $1.2 million of revenues. The new owner has plans to further update the community... Read More »Aging Skilled Nursing Facility Sells In Texas
September saw many deals that featured older, struggling skilled nursing facilities. This comes at a time of record-high SNF prices, on a per-bed basis, although maybe not for long if the fourth quarter follows September’s performance. The truth is that despite the record high prices we have seen (reaching nearly $100,000 per bed in the four quarters ended March 31, 2017), the SNF industry probably faces more headwinds than tailwinds, ranging from aging facilities and shorter patient days to reimbursement risks and poor lease coverage, to name a few. Another truth is that the industry is becoming more and more bifurcated by the older, traditional nursing facilities on one end to the brand... Read More »Schedule a demo
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