Buying In Burbank

March 10, 2017, Steve Monroe, Senior Care Investor - It may have seen better days, but a skilled nursing facility in Burbank, Illinois sold to a pair of Chicago-based companies for $7.25 million, or $44,500 per bed. The 163-bed facility was sold by a New York-based owner of more than 180 skilled nursing facilities located across the country. In-place cash flow was negative at the time of the sale and occupancy had declined over the past few years. But that hasn’t always been the case, with local operators noting the well-maintained facility’s strong operations in the past, including back-to-back years of total revenue and EBTIDAR exceeding $10 million and $1 million, respectively.

A partnership between a national real estate investor and an emerging regional operator (both based in Chicago) stepped in as the buyer, paying $7.25 million. Based on operational beds, the price came to $57,000 per bed, still below the average of $99,200 per bed, per the 22nd Edition of The Senior Care Acquisition Report (to be released soon). Chris Hyldahl, Gideon Orion and Michael Segal of Blueprint Healthcare Real Estate Advisors handled the transaction on behalf of the seller. For more information, check out the April issue of The SeniorCare Investor.