On August 1, Trilogy Health Systems sold an Indiana senior care facility to a joint venture between YAM Management and a private REIT for $12.85 million, in a transaction represented by Ryan Saul of Senior Living Investment Brokerage Inc.
The purchaser acquired the skilled nursing facility to diversify into Indiana and capitalize on the high Medicare census and cash flow.
The Arbors at Michigan City, located in Michigan City, Ind., is a 180-bed skilled nursing facility that was built in 1972. The transaction had an 11.7% cap rate with a price per bed of $71,389. At time of sale, The Arbors was 80% occupied.
Trilogy Health Systems strategically divested The Arbors because it didn’t fit their prototype of skilled nursing combined with assisted living, says the Glen Ellyn, Ill.-based brokerage firm. Additionally, selling the facility freed up debt and equity to deploy to other projects that are more closely aligned with Trilogy’s model and vision.
YAM Management will add The Arbors at Michigan to its existing Illinois portfolio of 16 facilities.
Written by Alyssa Gerace