Clearer skies ahead
The long road to recovery continues for an independent/assisted living community in Tuscaloosa, Alabama. Built in 1998/2000 and non-performing since the Great Recession, the community saw trailing-12 months occupancy around 73%, but that had improved to 90% by the time of the sale, and was climbing. However, the operating margin could definitely be improved from 11% on approximately $1.37 million of revenues. There are 40 units of assisted living in one building, and 12 IL units in a second building on the 11-acre site. A not-for-profit group is the seller, which may explain the higher expenses. A joint venture between a private REIT and a regional operator based in Mississippi was the... Read More »
Lining up in Massachusetts
It was just a matter of time when Skyline Healthcare would enter the Massachusetts skilled nursing market. The Wood Ridge, New Jersey-based owner/operator of facilities in New Jersey and Pennsylvania had been leasing a trio of small dually-certified facilities from a family operator for a year, before closing on the real estate this month. Included in the portfolio was a 30-bed facility in North Dighton, a 26-bed facility in Fall River and a larger 73-bed facility in New Bedford. The smaller buildings were well occupied in the 90s, but the larger one was lagging slightly, with occupancy in the mid-80s. Census mix was heavy Medicaid (about 82%), with the remainder split evenly between... Read More »
Green House Sale
Brad Clousing of Senior Living Investment Brokerage sold a type of skilled nursing campus that does not come on the market very often. Typical of the Green House configuration, the campus consists of 12 separate cottages with 12 private rooms in each cottage, making for a more home-like environment. Occupancy was at 90%, but the property, located in Greer, South Carolina was operating at a loss on $15.2 million of revenues. The seller was a not-for-profit hospital system, and the price was $10.1 million, or $70,100 per bed, reflecting the age (under 10 years) the cash flow potential. Read More »
Closing in Cordele
The sole assisted living community in Cordele, Georgia, sold to Omega Healthcare Investors when its Florida-based partnership owner decided to exit the Georgia market. Built in 1987 and 1996, the community features 38 personal care and eight independent living units, and has historically been well occupied, currently standing at 93%. Its 20% operating margin on approximately $1.4 million of revenues could be improved, and the buyer, with Fellowship Senior Living (its existing South Georgia operating partner), is planning on $500,000 in capital improvements. The purchase price comes in at $2.5 million, or $54,348 per unit, with a 12% cap rate. Brad Clousing and Patrick Burke of Senior... Read More »Schedule a demo
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