What a way to celebrate the New Year. On New Year’s Eve, Senior Living Investment Brokerage, Inc. set the record price per bed in Indiana. I received a number of inquires about how/why the price per bed in Indiana went from $25,000 ten years ago to achieving over $100,000 today. Here are a few of the reasons:
1) A full moratorium is in the works. This is a simple supply and demand issue. Once a full moratorium is in place, less supply of beds increases the value of each individual bed.
2) Premier communities with a high quality mix (over 50%) achieve a premium.
3) The presence of IGT (Inter Governmental Transfers) / UPL (Upper Payment Limit) in Indiana has enhanced revenue and returns for many of the facilites, translating to more overall value.
4) Interest rates are still at historic lows.
We are seeing record setting prices across the country, not only in Indiana. If you have thought about selling, please contact Ryan Saul to learn more about the value of your facility.
Ryan Saul has sold a 43 Bed Skilled Nursing Facility in Indiana. The 18,097 square foot property was built in 1960. This facility is unique in that it is one of only three facilities in the country that serves those afflicted with an advanced neurological disorder called Huntington’s Disease. This is the only facility in the Midwest that focuses on residents with Huntington’s disease and it attracts residents from throughout the Midwest and is supported by Huntington’s Disease specialty doctors. The Seller is a non-profit organization based on the East Coast which is strategically divesting of the property to concentrate on their operations in the East. The Buyer is based in Indiana and will continue to cater to HD residents while at the same time improving expenses through economies of scale and will also be enrolled in the IGT (Inter Governmental Transfer) program which will positively impact the cash flow moving forward. At the time of the sale the facility had negative cash flow yet Ryan was able to secure multiple offers. For additional information, please contact Ryan at 630/858-2501 or firstname.lastname@example.org
Nick Cacciabando has sold a 75 bed Skilled Nursing Facility in Iowa. The facility was owned and operated by the same family since it was developed in 1966. This was their only long term care/seniors housing facility and they are retiring from the business. The Buyer utilized a 1031 Exchange in purchasing the facility. This was a strategic acquisition for the Buyer as they have over 10 facilities in Iowa. Census at the time of sale was 85% and the sale resulted in an 8.9% capitalization rate. For additional information, please contact Nick Cacciabando at 314/961-0070 or email@example.com