Thornton Hall Nursing and Rehabilitation, a 60-bed skilled nursing facility located in Norfolk, Va., was sold in a 60-day span.
The transaction was sparked by an active skilled nursing investor — with an expanding regional operating platform in the state — who presented an unsolicited offer to acquire the SNF from a client of Blueprint Healthcare Real Estate Advisors.
Steve Thomes and Michael Segal led the transaction for the Chicago-based Blueprint.
Senwell Arranges Off-Market SNF Sale in Kentucky
Senwell Senior Investment Advisors announced the off-market sale of a 73-bed SNF in Graves County, Kentucky; the seller was seeking to exit to focus more attention on core assets.
The buyer has been gaining market share in the region and is expected to capitalize on the investment through cost savings from economies of scale, according to a release from Senwell. The seller’s top priority was closing the transaction with confidentiality, according to the Toledo, Ohio-based advisory firm.
The transaction was facilitated by Ben Bohland and Brandon Bohland.
Kentucky is a notoriously challenging operating environment for SNF operators; the operator Preferred Care cited litigation in the state for its 33-SNF bankruptcy declaration in 2017, and Signature HealthCARE CEO Joseph Steier said in 2018 that the company barely survived a rash of malpractice suits in the state.
Diversicare Healthcare Services (OTCQX: DVCR) exited the state altogether in September 2019.
REIT Divests in Texas
A publicly traded real estate investment trust (REIT) divested the 114-bed Christian Care Center of Texarkana, in Texarkana, Texas, to “an established operator in the region,” according to a release on the deal from Blueprint.
The facility had recently had to close one of its three resident wings to manage expenses and gain efficiency; the property was built in 1972 and was designed to offer rehabilitation, skilled nursing, cognitive care, and long-term care.
Gideon Orion and Michael Segal facilitated the deal, which was positioned as a value-add opportunity for an operator to reopen the closed wing and restore stable census levels.
Texas is another difficult state for operators, due to its low Medicaid reimbursement and how easy it is for anyone to open a SNF there in the absence of certificate of need (CON) restrictions. Still, some providers have hopes they can manage the reimbursement headwinds that plague the Lone Star State.
“They believe they can bill Medicaid better,” Jeff Rhodes, managing director at the Chicago-based real estate brokerage Helios Healthcare Advisors, told Skilled Nursing News in September. “That’s a lot of the problem — a lot of these providers don’t pay attention to the details that they’re billing, and they leave a lot of money on the table.”