Patrick Byrne and Jeff Binder have announced the sale of a 99 bed Skilled Nursing Facility in Southern Illinois. The facility, constructed in 1971, is located in a rural town with a population of approximately 1,000 but draws residents from the entire county. Marketing of the facility was enhanced by assumable HUD debt. The Transfer of Physical Assets took nearly eight months to complete. During the process the facility’s performance improved considerably. The Seller is a national owner/operator that acquired the facility in 2006. The Buyer is a regional operator based near the asset that will be able to create some economies of scale by absorbing this property into their current operations.
First quarter brought concern about little inventory on the market. We are selling all skilled nursing and assisted living we represent. Senior Living Investment Brokerage, Inc. is off to a great start and set to have a record year in 2010. Fortunately, proposals and new inventory has picked up dramatically over the last month. Lending and equity are showing strong signs of deploying capital in Seniors Housing. I would encourage you to think about selling any undesirable assets or capitalize on divesting any performing properties in the current environment.
I would be happy to put together a confidential analysis for any properties you may consider divesting. Contact Ryan Saul at firstname.lastname@example.org for more information.
Ryan Saul and Patrick Byrne have sold a 29 unit Assisted Living Facility in Metro East St. Louis for almost $100,000 per unit. The Seller had purchased the facilty to take advantage of an expiring 1031 exchange. He had no prior seniors housing experience and the facility struggled as a result. The Buyer is an experienced senior housing owner/operator and is confidentthey will be able to create efficiency within the operations. The facility, built in 1999, was sold with an adjacent lot that the new owners intend to use to expand the facility to 40-45 units. The sales price netted a 6.6% cap. rate. For additional information, please contact Patrick Byrne or Ryan Saul.
Jeff Binder and Brad Clousing have sold a 44 unit assisted living facility on A1A in Florida. The 44 unit facility is 32,000 square feet and was built in 1996. Census at closing was 60%. The Seller is one of the larger owner/operators in the U.S. and had purchased the facility as part pf a multi-state/multi-facility transaction in 2006. The Buyer is a regional operator out of Florida.
The Seller assisted the Buyer by providing Seller financing in the form of a second mortgage. The primary financing is being provided in the form of conventional financing by a regional lender out of Central Florida.
Please contact Brad or Jeff for additional information.
Brad Clousing has sold a 78 unit assisted living facility in Hollywood, FL, April 1, 2010. All the units are studios and there is approximately 3,000 square feet of medical office space in the building. The owners were looking to exit the senior housing market and were the owners since it’s original construction in 1999. The Buyer, TJM Properties out of Clearwater, assumed the existing HUD loan but simultaneously executed an A& to reset the rate and leverage. The facility sold for over $100,000/unit at a 7.1% capitalization rate. For additional information on this transaction, please contact Brad Clousing at 630/858-2501.