Two weeks ago, my colleague Matt Alley wrote a blog post on 4 benefits to using a SLIB broker. Recently, my partner Toby Siefert and I closed a transaction for a large family-owned Skilled Nursing Facility in the Northeast. This transaction demonstrates the value that SLIB brings to the table that Matt was referencing in his post, in action. Here are some specific things involved with our recently closed transaction that demonstrates the tailor made approach we take when seeking to accomplish our client’s objectives:
- Expedited Marketing Period – The client wanted to move quickly to get qualified offers in hand. SLIB, as a team of brokers, was able to not only identify qualified buyers for this deal, but we engaged them quickly and ensured they had everything they needed to make an informed decision. We secured several qualified offers within 2-3 weeks after the marketing period began.
- Advised Client on Buyer Fit – For this particular client, one of the most important things, aside from sale price, was to find a buyer that would carry on their exceptional legacy of caring. The buyer who was ultimately selected and closed on the deal was a non-profit organization that places care for their residents and staff at the center of everything they do. The client connected with the buyer at the initial stages, and it gave them a high degree of comfort that their community would be in great hands moving forward.
- Competitive Bid – We worked on the client’s behalf to not only get them the sale price they desired, but also the terms they desired too. This was able to be accomplished through the securing of several offers that allowed us to create a competitive bid situation to get the client what they wanted.
- Walked With Them – We navigated both our client and the buyer through the negotiation process, and advised where appropriate. We never left our client and the buyer alone to figure things out themselves. We were there every step of the way till the deal got done.
- Confidentiality – Like all of our clients, they wanted to be the ones to control when the announcement of the sale is made to their staff and residents. From start to finish in this transaction, confidentiality was never breached, and our client had full control over the timing of the announcement of the sale.
To discuss how SLIB can create a tailor made confidential sale process for you, please contact Dave Balow at email@example.com or 630.858.2501. It would be an honor to represent you and help you accomplish your objectives in a sale.
How to Sell Assisted Living Facilities Quickly – By Jason Punzel
Deciding when to sell your assisted living facility (independent living community or skilled nursing facility) can be a daunting task and there are many factors to consider. However, once an owner decides to sell, typically they ask us how to sell assisted living facilities quickly. As a company, Senior Living Investment Brokerage, Inc has sold more senior living and skilled nursing facilities than any other brokerage company over the past seven years. Over the years, we have found a number of things an owner can do to help sell their senior housing community faster, below is a list of the top six (3 will be in this blog and 3 will be in a future blog post):
- Price the community reasonably – Of all the things an owner can do to sell their senior housing community quickly, pricing it reasonably is the most important. Overpriced properties do not sell. They tend to sit on the market for months as buyers do a quick analysis and pass. Eventually, the seller drops their price to a reasonable market price. Unfortunately, many buyers will not go back and re-look at the property or they wonder if it will have additional price drops. Effectively the property becomes a stigmatized property. Financially qualified buyers tend to be smart and know the market well. They purchase properties that make financial sense and don’t get persuaded emotionally. Over pricing a property in hopes to “get lucky” and find a buyer that will pay the higher price rarely works and usually ends up wasting time and often times can result in a lower price than if the seller priced the property reasonably from the beginning.
- Hire an experienced brokerage company – An experienced broker can help a seller price the property reasonably. It is important to make sure the brokerage company has a team of brokers that work together to contact hundreds of potential buyers across the country quickly. Additionally, most owners want a confidential sale of the seniors housing community and many brokers do not do a good job of this.
- Talk to an attorney and accountant ahead of time – Owners should talk to their accountant before the marketing process starts to make sure they understand the tax implications of the sale and decide if they want to consider a 1031 Exchange. Additionally, it is very important for a buyer to be working with an attorney who has specific experience in health care real estate sales. Most brokers can recommend a good attorney if an owner does not already know one. If an owner waits until offers start to come in to talk to their accountant and retain an attorney, it can slow down the process and make the seller look very inexperienced.
I will post ideas 4-6 on my next post.
For more information on selling your seniors housing property, please contact Jason Punzel, Senior Living Investment Brokerage, Inc., at 630-858-2501 x 233 or firstname.lastname@example.org.