Senior Living Investment Brokerage Sell Skilled Nursing Facility

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Ryan Saul, Toby Siefert and Patrick Burke Sell Skilled Nursing Facility

The western Tennessee skilled nursing facility was originally built in 1973 on 2.1 acres. The rural property has 62 skilled nursing beds and 30 inactive assisted living beds. At the time of the sale, the 32,300 square foot property was at 56% census. The Seller is a public REIT and the operator made a decision to exit the property because it did not fit within their geographic footprint. The Buyer is a not-for-profit organization based out of Tennessee that hired a Tennessee based operator with 42 communities manage the-day-to-day operations. Fo additionl information, please contact Patrick Burke, Toby Siefert or Ryan Saul of Senior Living Investment Brokerage at 630/858-2501 www.seniorlivingbrokerage.com

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Patrick Burke Hired To Sell Skilled Nursing Facility

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Senior Living Investment Brokerage Hired to Sell Skilled Nursing Facility in North Carolina.
The 133 Bed Skilled Nursing Facility also has 7 Assisted Living Beds. The property was built in 1994 and was closed by the Seller voluntarily in 2012. Despite these challenges, Senior Living Investment Brokerage was able to procure multiple offers and sell the building for over $6,000,000. The Buyer, a skilled nursing operator based out of North Carolina, plans on either investing capital to upgrade the facility or build a new facility within the county. The Seller is a regional owner operator based out of the Southeast. For more information on this transaction or how Senior Living Investment Brokerage, Inc. can assist you with the sale of your seniors housing community, please contact Patrick Burke at 630/858-2501 or [email protected]

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Jeff Binder and Brad Clousing Sell Assisted Living Community in Georgia

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Senior Living Investment Brokerage, Inc. recently sold an 84 Unit Assisted Living Community in Cumming, Georgia. This was the third asset in a sale-leaseback arrangement with CNL by the developer owner in 2014. The asset was under construction during the the 2014 transaction and CNL had a right of first refusal on the property. Assisted Living and Memory Care services are both offered at this state of the art property. The unit mix is 36 memory care units and 48 assisted living units. The asset leased up well ahead of schedule and was stabilized prior to closing of the transaction. The building is licensed for 90 assisted living beds by the State of Georgia. Census at the time of sale was 95% and the cap rate was &.5%. The assisted living community sold for $217,262 per bed. For additional information contact Brad Clousing or Jeff Binder at Senior Living Investment Brokerage, Inc.

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Now May Be a Great Time for a Seniors Housing / Long Term Care Sale

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On March 9-11th, Matthew Alley represented Senior Living Investment Brokerage at the NIC Spring Investment Forum in Dallas, Texas.  While attending sessions and meeting with operators, capital providers and other industry professionals, there were five main reasons why most of the attendees agree that now is a very good time to proceed with a Seniors Housing / Long Term Care sale.

1. Capital is available at low cost of funds. The Conference was very well attended by many capital providers – REITs, Private Equity, agency lenders, commercial banks and other individual or family investors.  Those capital providers were anxious to deploy equity and debt financing in new development or acquisitions in the Seniors Housing / Long Term Care industry.  They spoke of low cost of funds, stemming from low interest rates, historically low capitalization rates in other real estate classes and strong balance sheets, as a reason why they could still be very aggressive in their pricing.

2. Recent recovery in stock prices of publicly-traded REITs. While not perfectly correlated, when REIT stocks perform well, those companies have a greater ability to increase their acquisition pipeline.  The volatility in the stock market in general and specifically with health care REITs, add another major risk factor for the future of the acquisition market.

3. Development risk. A good number of conversations revolved around development and the risk of some markets being overdeveloped, especially in the state of Texas.  While most believe that Texas is in good shape long term, there is no doubt that there will be a number of submarkets that will be overdeveloped.  If one of your communities is in a market that carries that risk, it may make sense to sell now as opposed to waiting until the market stabilizes.

4. Reimbursement risk. In the current Long Term Care market, there is much less development risk, but there is reimbursement risk.  In the current political landscape, many states’ budgets are very tight and a quick way to cut expenses is to decrease Medicaid reimbursement.  Medicaid is one of the largest expense line items for every state and a cut of even 3-5% can result in a major savings for the state government while having a negative effect on the financials for long term care facilities.  Medicare carries a similar risk with federal healthcare constantly being in flux.  Any future cuts in either Medicaid or Medicare could have a major impact on Long Term Care valuations / prices.

5. Seasonal effects. The spring season is typically a very good time to market properties. Many potential acquirers have completed year-end financial reporting and have a clear strategy for acquisitions.  They are typically filling their pipeline for transactions to close in the summer.

If you have any questions on the topic of this post or would like a confidential valuation of part or all of your Seniors Housing / Long Term Care portfolio, please contact Matthew Alley of Senior Living Investment Brokerage at 630-858-2501 ext. 225 or [email protected].

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