Matt Alley has sold another Skilled Nursing Facility in Texas. The property consists of 199 licensed beds/165 usable beds. The facility was built in 1963 with an addition in 1973 and most recently remodeled/upgraded in 2011. The facility enjoys a strong census (84%) but is reliant upon Medicaid residents(80%). The single story building consists of 47,250 square feet and is located approximately 90 miles east of Houston. The property sold for a 13.3% capitalization rate/1.03 EGIM. The Seller was a regional owner/operator. The Buyer is an owner/operator from the Dallas/Ft. Worth area with several facilities throughout Texas. For more information, please contact Matthew Alley at firstname.lastname@example.org or 630/858-2501.
In our industry, the annual NIC National Conference (www.nic.org) is the “go to” conference that everyone attends. Whether you are an owner, lender, broker or just want to learn about the seniors housing space, it is a must attend. I have been attending this conference for the last fourteen years and plan to do so again this year. I can usually tell how our space is doing by the number of lenders attending. After scanning the preliminary attendee list, it is obvious, based on the number of individuals attending from the various lenders and REITs, that the market is stronger than ever.
If you have thought about selling, rather that speak to the REITs or owners direct, it would be a good idea to speak with Senior Living Investment Brokerage, Inc. to find out what your community is worth. We have access to all the REITs and buyers with strong relationships with aggressive lenders.
Based on the number of capital providers attending NIC, contact Ryan Saul today to hear more about the market and to discuss the current value of your community.
Will the New Owner Keep My Employees?
One of the most common questions we get asked by potential sellers is, “Will the new owner keep my current employees?” Of course the answer depends on the situation; who is the new owner, how well is the current facility operating, etc.
Typically, if a facility is being ran well, there is a high probability that the new owner will keep the current employees. To operate effectively, the community needs to have employees, and it is in the new owner’s best interest to not “rock the boat” if the current employees are doing their job well and have good relationships with the residents.
If a facility is not being operated well or is losing money, there is a greater probability that a new owner may change some employees. However, this is not always the case. Often times a community needs capital improvements, better management, or upgraded IT systems to improve and the current employees are doing a good job with what they have to work with. In this case, the new owner will probably keep the current employees and work with them on improving the facility.
There is no guarantee on what the new owner will do. When selling a facility, the current owner has to realize that changes will happen after the sale and sometimes the changes will effect employees. However, most new owners have a strong desire to keep good employees that care for the residents and treat the facility as if it were their own. Thus, new owners typically ask who the key employees are and wait to evaluate them for a few months before making any personal decisions.
To discuss this question or other questions about selling your Seniors Housing Community, please contact Jason Punzel at 608-858-2501 x 233 or email@example.com.