Patrick Byrne and Brad Clousing sold a 160 bed SNF for a local hospital authority. The 45,000 square foot facility was built in phases between 1968 and 1974 but was well maintained and recently updated. The facility was operated similar to a hospital and staffed at a level that could not be supported by the margins in the nursing home industry. Despite the poor financial performance, substantial upside could be found in the existing operations and the foundation was there for a new owner to succeed. Although it was losing over $400,000/year at the time of the offering, the facility was expecting a substantial Medicaid increase which was expected to reduce the losses soon after closing.
Within 7 days of the initial offering, Senior Living Investment Brokerage, Inc. was able to procure multiple offers, with several buyers positioned at the list price. After a request for best and final offers and an evaluation of the interested parties, AdCare Health Systems was chosen. The terms of their offer, history of transitioning non-profit facilities and their ongoing working relationship with Senior Living Investment Brokerage, Inc., resulted in the Seller selecting their proposal. The ultimate sale/closing price was $240,000 over the intitial offering price. For additional information, please contact Brad Clousing at clouisng@slibinc.com or Patrick Byrne at byrne@slibinc.com
