Monthly Archives: October 2011

October 28, 2011
Grant Kief

Patrick Burke Sells Two Tennessee Facilities

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Patrick Burke sold a 196 unit Independent Living Facility and a 52 unit Assisted Living Facility with Memory Care. The facilities were in receivership and sold through the U.S. Bankruptcy Court. The previous owner had struggled with occupancy and had not been able to reinvest capital into the buildings for several years. The buildings were adjacent to each other and shared a kitchen, maintenance crew as well as other expense items. There were numerous deferred maintenance issues at the facilities and the new owner was able to secure a line of credit to renovate the facilities. The Buyer, a regional operator out of the Southeast, plans on renovating both facilities and utilizing their marketing experience to improve census. Deespite their negative cash flow, Senior Living Investment Brokerage, Inc. contacted over 50 potential buyers and fielded multiple qualified offers. For additional information, please contact Patrick Burke at 630/858-2501 or burke@seniorlivingbrokerage.com

October 25, 2011
Grant Kief

Sanders, Binder and Byrne Sell Two Iowa Facilities

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Ross Sanders, Jeff Binder and Patrick Byrne sold two seniors housing facilities in the Des Moines, Iowa area- Genesis Senior Living Center and Regency Care Center and Assisted Living. Genesis Senior Living Center is an 80 bed Skilled Nursing Facility located in southern Des Moines. The facility was constructed in phases; 1962, 1975 and 2006. Regency Care Center and Assisted Living is located in Norwalk and consists of two separate buidings on the same campus; a 101 bed Skilled Nursing Facility and a 30 unit Assisted Living Facility. The SNF was built in 1976 with an addition in 1983 while the ALF was built in 2007. At the time of sale, the overall census for the entire portfolio was 83.3%. The sale price of $12,650,000 or $59,953/bed/unit translated to a 12.4% capitalization rate/1.22 GIM. The Seller was a regional owner. The Buyer intends on investing capital while improving operations and increase overall census. Senior Living Investment Brokerage was able to work with the Seller to implement a national marketing plan and field multiple qualified offers on the portfolio. For additional information, please contact Patrick Byrne, Jeff Binder or Ross Sanders at 314/961-0070.

October 18, 2011
Grant Kief

Patrick Byrne and Nick Cacciabando Sell SNF Portfolio in Arkansas and Missouri

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Nick Cacciabando and Patrick Byrne sold the 506 bed, 5 facility Pinnacle Healthcare portfolio. The transaction also included Pinnacle Healthcare’s home office located in Arkansas. Four of the facilities are located in Arkansas and one is located in Missouri. The facilities were built between 1971 and 1988 and all have sound physical plants. The entire portfolio had struggled as recently as a few years ago but new management had improved the operations despite being relatively new to the seniors housing industry. This is the first purchase in Arkansas for the Buyer, Adcare Health Systems. They plan on using the home office to service current and future facilities in the region. The portfolio sold for $20,000,000 at a 12.1% capitalization rate. Adcare anticipates improved operations due to their management experience. Senior Living Investment Brokerage, Inc. was able to work with the sellers to implement and execute a marketing plan which in turn generated multiple offers on the portfolio. For additional information, please contact Pat Byrne or Nick Cacciabando at 314/961-0070.

October 12, 2011
Grant Kief

Ross Sanders and Jeff Binder Sell 100 Bed Iowa SNF

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Jeff Binder and Ross Sanders sold a 100 Bed Skilled Nursing Facility in northwest Iowa in a town of over 10,000 residents. At the time of the sale, the facility was underperforming and had a census of 35%. The Seller is a regional owner/operator who was one of the original investors in the facility. The Buyer will invest capital into the facility and work to increase the overall census. Constructed in 1970, the one story facility is comprised of approximately 27,781 square feet on 2.3 acres. The building is only partially sprinklered. For additional information, please contact Ross Sanders or Jeff Binder at 314/961-0070.

October 4, 2011
Grant Kief

George Pappas Sells 4 Facilities in South Dakota

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George Pappas has sold a portfolio of four Assisted Living Facilities in South Dakota. Built between 1999 and 2003, the four facilities total 104 units/130 beds. At the time of sale, the overall occupancy was 85%. The Seller is looking to exit the seniors housing market. The Buyer is a regional operator looking for immediate savings with many of the larger cost centers. For additional information, please contact George at 630/858-2501 or pappas@seniorlivingbrokerage.com