Monthly Archives: March 2012

March 20, 2012
Grant Kief

Ryan Saul, Toby Siefert and Patrick Burke Sell Pennsylvania ILF/ALF

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Toby Siefert, Ryan Saul and Patrick Burke sold a 94 unit/120 bed Independent Living and Assisted Living facility in Pennsylvania. Originally built in 1927, the facility was extensively renovated in 1998 and converted to ILF/ALF. Even though the facility is licensed for 120 beds, it is configured with nearly all private rooms resulting in a census upon sale of 42%.
In 2010, The Pennsylvania Department of Public Welfare placed a ban on admissions as well as increased staffing requirements at the facility citing care related issues. The property lost almost $1,000,000 annually in 2010 and 2011. The Seller, a group of TIC investors, hired an experienced management company to address the issues. The new management company was able to remove the ban on admissions and begin focusing on repairing the image of the facility and turn around the facility in terms of profitability. Although the facility was losing ($500,000) annualy at the time of sale, Senior Living Investment Brokerage was able to work with the Seller to obtain a price of $5,800,000 or $61,700/unit. 3.67 GIM.
For additional information, please contact Toby, Ryan or Pat at 630/858-2501.

March 14, 2012
Grant Kief

Matthew Alley and Jeff Binder Announce Texas Sale

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Jeff Binder and Matthew Alley have sold a pair of Skilled Nursing Facilities in Texas. The facilities, located in the same city, are a 120 bed facility built in 1994 and a 108 bed facility built in 1970. The Seller is an local, independent Texas owner/operator. The Buyer is an owner/operator from New York that already owns several facilities in Texas. One of the facilities is profitable while the other is a non-performing facility. The facilities sold for $5,250,000. This transalates to .84x GIM or $23,025/bed. For additional information, please contact Matt Alley- alley@slibinc.com or Jeff Binder- binder@slibinc.com

March 8, 2012
Admin

Housing Improving?

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It is exciting to see the economy improve. It has been a stressful couple of years. Thankfully, the long-term care and seniors housing market has remained resilient during this time. I believe that when we see housing improve and unemployment under control, the economy is going to take off. What is making the difference? The credit market is loosening. Borrowers are able to obtain lending and interest rates are at all time lows. As people keep their head above water by taking advantage of low interest rates and gain meaningful employment, consumer confidence will take off.

What does this mean for long-term care and seniors housing owners? All of those potential residents that have been holding off moving in for as long as they can will start to gain confidence in their wealth and take advantage of care that is at their disposal.

If you are thinking of buying a nursing home, assisted living facility or independent living facility, take advantage of the low cost of capital. If you have thought about selling, now would be a great time while demand is surpassing supply.

Please contact me at ryansaul@slibinc.com to learn more about what we have for sale or to talk about selling in today’s market.