DALLAS — Marcus & Millichap (NYSE: MMI) has arranged the sale of a portfolio of eight skilled nursing facilities and one assisted living facility totaling 1,080 licensed beds in the Dallas-Fort Worth Metroplex.
“Secured by assumable nonrecourse government agency financing at below-market interest rates, the buyer made a strategic acquisition with built-in financing,” says Nick Stahler, first vice president investments in Marcus & Millichap’s Orange County office. “The portfolio’s occupancy rate at the time of the sale provides significant upside through occupancy growth, improvement of payor mix, and expense control.”
Stahler, along with Marcus & Millichap’s Michael Mooney and Austin Diamond, represented the seller, a regional private equity owner. The buyer was a family office private equity investor. The price and details on the properties were not disclosed.
“Each facility can function independently and also, due to their proximity, offer new ownership significant economies of scale,” says Mooney. “The facilities are well-positioned to recover from the effects of the pandemic and return to pre-COVID levels of revenue and profitability.”
Six of the facilities are directly within the Dallas MSA and three are a two-hour drive north of downtown Dallas. The portfolio contains 992 skilled nursing beds and 88 assisted living beds.
Tim Speck, senior vice president and division manager, is Marcus & Millichap’s broker of record in Texas.