More than two years after announcing a plan to exit the skilled nursing space, former industry giant Kindred Healthcare has sold off the final remaining standalone SNF in its portfolio.
The Louisville, Ky.-based operator sold Kindred Transitional Care and Rehabilitation — Spring Valley, a 160-bed property in Las Vegas, to Capital Senior Ventures on October 1, according to a Thursday announcement from mergers-and-acquisitions advisory firm Healthcare Transactions Group.
Capital Senior Ventures, a subsidiary of the Baltimore-based finance and investment company Capital Funding Group, leased the property to operator Sapphire Healthcare Management.
The transaction marks the Tucson, Ariz.-based Sapphire’s first entrance into the Las Vegas marketplace.
“Sapphire Healthcare is excited to expand into the Las Vegas market,” CEO Shua Seif told SNN in an e-mail. “The upcoming rollout of advanced clinical capabilities is something the market has asked for. The facility itself is state of the art, and promises to be a top-tier choice for the wonderful people of Clark County.”
Originally built in 2015, the Spring Valley property features mostly private rooms, with piped-in oxygen, a movie theater, and a quartet of therapy gyms. The facility is also adjacent to Spring Valley Medical Center, a 292-bed hospital.
The Reisterstown, Md.-based Healthcare Transactions Group served as a co-advisor to Kindred on the deal, with HTG president Mark Davis leading the transaction. Terms, as well as the price tag, were not disclosed.
Once a dominant player in skilled nursing, Kindred shook the post-acute space in the summer of 2017, when it announced a plan to sell off its entire portfolio of 89 SNFs and seven assisted living centers to private investment firm BM Eagle Holdings for $700 million.
“Exiting the skilled nursing facility business, in its entirety, has been a long-stated goal of our enterprise,” CEO and president Benjamin Breier said in a June 2017 statement. “After more than two decades of nursing center operations, this announcement clears the way to closing that chapter of Kindred’s story, and turning the page to the future of integrated post-acute care.”
At the time, Kindred signaled its intention to hold onto a Las Vegas facility as the final remaining SNF in its portfolio.
The sell-off occurred in waves, with BM Eagle flipping some of the properties to new owners — including CareTrust REIT (Nasdaq: CTRE). Kindred itself has since been sold to an ownership group that includes health insurance giant Humana (NYSE: HUM) and a pair of private equity firms. The company’s service lines now include inpatient rehabilitation hospitals, home health services, and contract therapy offerings.