June 10, 2016
Grant Kief

Skilled Nursing Facility Sale

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Skilled Nursing Facility Sale in Alabama

    Skilled Nursing Facility sale recently facilitated in Alabama by Brad Clousing and Ryan Saul of Senior Living Investment Brokerage, Inc. The transaction consists of a 117 Bed Skilled Nursing Facility located in the city of Daphne, Alabama. Daphne is a thriving suburb located 11 miles northwest of Mobile, Alabama. The skilled nursing facility was constructed in stages with original construction in 1966 and additions in 1986, 2001 and 2004. The building consists of approximately 97,173 square feet over three stories.

    Medical Office Building

    The Skilled Nursing Facility sale also included a free standing medical office building. More than half of the medical office building was recently leased to a nationally recognized teneant. The newly executed lease will provide additional revenue going forward for a the new owner.

    Seller Representation

    The Seller purchased the property in 2011 with intentions to grow their skilled nursing portfolio through additional acquisitions in Alabama. However, skilled nursing facility sale opportunities and growth options did not materialize. At the time of sale, this was their only Alabama operations so the decision was made to sell in order to focus on future growth in other regions of the country where they had other skilled nursing operations. The Buyer is an Alabama based not-for-profit organization with strong local ties. They have plans to build on the strong Medicare census and to continue to expand upon their Alabama presence and reputation. They will also be able to reduce expenses and grow census through economies of scale. Senior Living Investment Brokerage, Inc. procured multiple qualified offers for this Skilled Nursing Facility sale and despite delays due to survey and tenant negotiations on the medical office building, the transaction was able to close within five months from commencement of marketing.

    Sales Overview

    The 117 bed skilled nursing facility sale was at 86% census at close of escrow. The cap rate was 4.6% at a 1.1X gross income multiple. Senior Living Investment Brokerage, Inc. was able to procure a sales price of close to $105,000 per bed for the Seller.

    Contact Info

    For additional information on this Skilled Nursing Facility Sale or to inquire how Senior Living Investment Brokerage, Inc. can assist you with your investment objectives, please contact Brad Clousing at clousing@slibinc.com or Ryan Saul at saul@slibinc.com 630/858-2501

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