May 17, 2016
Grant Kief

Skilled Nursing Sale Handled by Patrick Byrne and Jeff Binder

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Skilled Nursing Sale recently handled by Patrick Byrne and Jeff Binder of Senior Living Investment Brokerage, Inc. The Skilled Nursing sale was a rare opportunity to acquire two facilities consisting of 360 beds within 50 miles of St. Louis. Senior Living Investment Brokerage, Inc. was able to procure double digit offers within weeks of commencing marketing of the properties and ultimately selling the two Skilled Nursing Facilities above the stated list price. The first Skilled Nursing Facility at 240 beds, is one of the larger SNF’s in the state. Due to original construction in 1977 coupled with a saturated north county market, the census consistently hovered around the 60% range. With a planned infusion of capital, the new owner hopes to improve the quality mix and gradually grow into a higher, more stable census. The original building was constructed in 1919 in the other facility, but the resident rooms were located in wings constructed in 1971 and 1977. This facility also struggled to maintain census but was profitable due to low expenses. The census at the tme of sale was 70%. Both facilities are primarily Medicaid facilities. The properties sold for a combined price of $39,000 per bed but many in the market evaluated the package at a lower functional bed count. But the draw of the upside in the balance of beds was enough to overcome the lack of profitability and the recent downward trend in the operations. The combined cap rate at the time of sale was 5.9%. The Seller was a local estate which was liquidating assets and the Buyer is a large Midwest operator. The sales price for both properties was $14,000,000. For additional information on this sale or on how Senior Living Investment Brokerage, Inc. can assist you with the disposition or acquisition of seniors housing properties, please contact Jeff Binder at binder@slibonc.com or Patrick Byrne at byrne@slibinc.com 314/961-0070.