Healthcare Realty Brokerage, Inc., recently closed on the sale of the Deaconess Long-Term Care portfolio of eleven Missouri properties for $27,200,000 to affiliates of Illinois-based Platinum Healthcare
The transaction consisted of 852 licensed skilled nursing beds and 128 assisted living beds, the portfolio ranks among the largest to close in Missouri in recent history said the company in a statement.
The seller, a non-profit hospital system based in Cincinnati, Ohio, owns similar assets in other markets. The purpose of the divestiture was to reduce the organization’s presence in geographically disparate states, and to enableDeaconess to focus on its core competencies in the areas of hospital and home health services.
At closing, the portfolio-wide EBITDAR for the trailing twelve-month period was approximately $3 million, yielding a capitalization rate of 11%. This represents an aggressive valuation for assets with Medicaid as the predominant payer source, and we attribute that to the desirable Certificate of Need licensure in Missouri, along with opportunities for increased operating efficiencies.
Illinois-based Platinum Healthcare, operates several facilities in Missouri, and this represents a significant increase in the size of their company.
“This hard-won closing represents the final chapter of a marathon transaction that began nearly 18 months ago, said Grant Edwards of Healthcare Realty. ”The buyer could not easily reach agreement with the seller on the precise structure of the transaction, which was originally contingent upon seller financing. At the end of the day, I was very pleased that Healthcare Realty Brokerage was able to play an instrumental role in effectuating an all-cash deal that satisfied both parties’ closing requirements.”