Sabra Sells Pair of Genesis Skilled Nursing Facilities; SLIB Pulls Off Sale Despite COVID-19 Market Pressures

Sabra Health Care REIT (Nasdaq: SBRA) late last week announced the sale of two facilities operated by publicly traded skilled nursing giant Genesis HealthCare (NYSE: GEN).

The Irvine, Calif.-based real estate investment trust (REIT) sold the properties, both located in Montana, to an undisclosed buyer for a total price of $14.4 million — which included the assumption of $14.2 million in existing debt backed by the Department of Housing and Urban Development (HUD).

Sabra’s total annual rent collected from the Kennett Square, Pa.-based Genesis will decline by $1.1 million, according to the REIT.

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Once a major landlord for Genesis, Sabra largely parted ways with the operator in 2017 and 2018, as part of a plan that Sabra CEO Rick Matros dubbed the “Genesis Exodus.”

SLIB Brokers Skilled Nursing Sale in Illinois

Senior Living Investment Brokerage last week announced the successful completion of a deal to sell the Hallmark House Nursing Center in Pekin, Ill. on behalf of an out-of-state owner.

The 71-bed facility had previously been under the control of a private owner based in California, who elected to retire amid difficulties managing the property from a distance. The Glen Ellyn, Ill.-based SLIB facilitated the sale of the property, originally built in 1964 and only 62% full at the time of the transaction, to a regional owner-operator with an existing footprint in Illinois.

“Despite the challenging environment with COVID-19, the buyer remained steadfast in getting this done and saw this as an opportunity to expand in a market where they had other communities,” Ryan Saul, the SLIB managing director who led the transaction, said in a statement announcing the deal. “The seller felt relieved to transition to a new owner that would take care of staff and residents.” 

The new owner intends to boost census with a mixture of Medicare and Medicaid residents, while also capitalizing on their existing economies of scale within the marketplace, according to SLIB.

ESI’s $10M Sale in Seattle

Evans Senior Investments facilitated the $10.5 million sale of Washington Care Services, a skilled nursing facility in Seattle that had previously been in receivership, according to a release posted to REBusinessOnline.

The former owner had defaulted on its loan, according to the release, sending the property into receivership in June 2019. The Chicago-based ESI represented the seller, the court-appointed receiver who had been managing the community on a temporary basis, in its successful plan to transfer the property to a Los Angeles-based operator and its East Coast-based capital backers.

“Washington Care Services presented a great opportunity for a new ownership group with operational expertise and synergies in the skilled nursing market to stabilize occupancy and improve upon the expense structure as this community is folded into their portfolio,” ESI CEO Jeremy Stroiman said in a statement, per REBusinessOnline. “Although the non-profit operator was unable to make the finances at the facility work in their favor, the transition to a larger operator should help the residents and employees at the community to be better cared for in the future with a better capitalized owner.”

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