Pennsylvania Personal Care Home Sold by Ryan Saul and Toby Siefert

Toby Siefert and Ryan Saul recently sold a 38 unit Personal Care Facility in Pennsylvania. The 28,277 square foot building built in 1965 consists of 38 units/60 beds on 11.4 acres. It is a well maintained community that was renovated in the late 1990's. The facility had a consistent track record of high census (98% at closing) and is 100% private pay even though the building has mostly semi-private rooms. Rents average $2,200/unit. The Seller was a regional seniors housing owner/operator that sold to focus on their 10 other/larger communities and to develop CCRC's. The Buyer was a Pennsylvania-based operator growing their portfolio. This was a strategic acquisition that fit well with their smaller, profitable communities. The property sold at a 1.3x GIM/11.6% capitalization rate. For more information, please contact Ryan at ryansaul@slibinc.com or Toby at siefert@slibinc.com 630/858-2501

Toby Siefert Brokers Sale of Pennsylvania Personal Care Home

Toby Siefert sold a 35 unit personal care home in Indiana, PA.  The facility was originally a hotel but had been converted and renovated into senior housing in 1986.  The facility is 17,530 square feet on 2 acres.  The building has 35 units of which 30 are private rooms.  The facility only accepts private pay residents.  The Seller was a local family and this was there only senior housing asset.  Senior Living Investment Brokerage was able to identify a first time Buyer for the facility.  Senior Living was also instrumental in assisting the Buyer in obtaining an SBA loan to purchase the personal care home.  The Buyer expects to be able to increase census and revenue at the facility.  For additional information, please contact Toby Siefert at 630/858-2501 or siefert@slibinc.com 

Government Regulation and its Effect on Sales

As we come towards the end of 2012, we begin to reflect on what sales trends we saw emerging in 2012 that may have been different or more pronounced than years prior.  As I cover sales of assisted living facilities and skilled nursing facilities throughout the Mid Atlantic and Northeastern states, one thing that came up over and over again this year was the effect of government regulation on both Sellers and Buyers.  Besides those looking to retire, the second most common reason individual owners told me they wanted to sell was that they just couldn’t handle the increasing regulation and oversight on their business.  In my territory, Sellers in Pennsylvania and Virginia seem to have been especially over-burdened.  This is a shame to hear, since the majority of owner/operators we work with have been in the business a long time, and have made a career of compassionate care for seniors.

Regardless of the election outcome, we expect that regulation over senior housing will continue to frustrate some owners to the point of selling, and require more patience on behalf of Buyers.  Each State has its own quirks, so if you have thought about buying or selling an assisted living facility or skilled nursing facility, we encourage you to contact Senior Living Investment Brokerage, Inc. to discuss our experience in each state, and the expected time frame and hoops to get from start to finish.

For more information, contact Toby Siefert at siefert@slibinc.com or 630-858-2501