Strawberry Fields REIT Back in Buying Mode

Strawberry Fields REIT Back in Buying Mode

After making seven acquisitions in 2019, Strawberry Fields REIT has finally reentered the acquisition arena in 2020, announcing its purchase of a 107-bed senior care facility in Danville, Kentucky. We imagine some time had to be spent on managing and consolidating its growing portfolio, and the skilled nursing industry has been preoccupied in the last several months with the COVID-19 crisis, but it is good to see them back buying again, bringing their current portfolio to 76 senior care facilities.  Previously owned and operated by several individuals (dba Marlin K. Sparks Management Company, Inc.), the Danville facility consists of 90 skilled nursing beds, 16 assisted living beds and one... Read More »
Strawberry Fields REIT Back in Buying Mode

Strawberry Fields REIT Invests in Indiana SNF

Strawberry Fields REIT grew its portfolio yet again, with the purchase of a 72-bed skilled nursing facility in Muncie, Indiana (Indianapolis MSA), pushing the REIT’s total SNF holdings to over 70 facilities. Strawberry Fields is no stranger to this property, having been leasing and subletting it from the previous landlord since November 2011. They picked up the property for $3.15 million, or $43,750 per unit, in an all-cash transaction. Built in 1972, the facility was part of an Indiana county hospital UPL tie-up with Henry County Hospital and is being managed by Infinity Healthcare Management. It offers both comprehensive medical and rehabilitative therapy services, in addition to... Read More »
Strawberry Fields Grows in Des Plaines

Strawberry Fields Grows in Des Plaines

Strawberry Fields REIT continues to grow its skilled nursing holdings, and did so in a big way this month, by acquiring a large 231-bed SNF in Des Plaines, Illinois. That facility has had a somewhat checkered past. Originally built in 1975, it was acquired by a Catholic not-for-profit hospital and skilled nursing provider in May 2011 for $22 million, or $115,200 per operating bed, at a 9.5% cap rate. At the time, the facility was operating at an 11% margin and with just 191 of the 231 licensed beds (about 113 of which were occupied at the time), for an effective occupancy rate of 59%. Its location close to Chicago, quality mix above 50% and specialty care services like ventilator, dialysis... Read More »
Skyline Healthcare Sells Three Arkansas SNFs

Skyline Healthcare Sells Three Arkansas SNFs

Skyline Healthcare just sold three of its Arkansas skilled nursing facilities to Strawberry Fields REIT for a combined price of $14.3 million, or $32,200 per bed, at an approximate cap rate of 10.7%, based on Q1:19 financials, annualized. Included in the deal was a 120-bed SNF in Newport, the newest of the facilities having been built in 2001. There was also a 152-bed facility in Hot Springs that was built in 1978, and the oldest property, built in 1950, which contains 140 skilled nursing beds and 32 assisted living beds in Little Rock. They operated at roughly a 9.5% margin, so there is certainly some room for improvement. Infinity Healthcare of Arkansas will manage the facilities going... Read More »
Strawberry Fields REIT Enters Arkansas Market

Strawberry Fields REIT Enters Arkansas Market

Strawberry Fields REIT entered the state of Arkansas in a big way, acquiring nine skilled nursing facilities in the state from one seller, plus one Kentucky facility from another. Totaling 1,004 beds, the facilities were owned by The Skyline Group, which acquired them from AdCare Health Systems, Inc. in October 2016 for $55 million, or 54,780 per bed, after leasing them for several months at a rate of $450,000 per month. The facilities are currently profitable, but report occupancy in the low-70s, with a 15-20% quality mix, and they are now being sold for $37.975 million, or $37,800 per bed. Strawberry Fields REIT will brand these facilities under the “Waters” brand and will add them to a... Read More »