Strawberry Fields REIT Pays $21M for KY Skilled Nursing Portfolio
- Feb 26, 2019
Strawberry Fields REIT has acquired a three-property skilled nursing facility portfolio, totaling 312 beds in Kentucky, for $21 million.
The trio of properties includes the 100-bed Landmark of Bardstown Rehabilitation and Nursing Center in Bardstown; the 106-bed Landmark of Laurel Creek Rehabilitation and Nursing Center in Manchester; and the 106-bed Landmark of Elkhorn City Rehabilitation and Nursing Center in Elkhorn City.
“We have a great tenant in the Landmark Group that has a stronghold in Kentucky and these are nice looking buildings in smaller areas,” Moishe Gubin, Strawberry Fields’ CEO, told Multi-Housing News. “They are excited to now be operating seven facilities in Kentucky and we are proudly their landlords.”
Oxford Finance LLC provided financing for the purchase.
The portfolio was 73 percent occupied at the time of the sale—with 21 percent Medicare, 60 percent Medicaid and 19 percent private pay and insurance facilities.
According to Gubin, Strawberry Fields REIT looks for high-quality healthcare operating companies in both the skilled nursing and acute care sectors.
“Our company has been fundamentally built on operations style of doing business where we take care of our employees and vendors and residents before the owner takes care of themselves,” Gubin said. “Landmark Group is no different and fit right into our stable of tenants. As most are, they are looking to grow with the right opportunity. It fit into our portfolio geographically and hopefully great things will continue to happen in Kentucky and Strawberry itself will continue to find deals and continue to grow the footprint in the country.”
Although Kentucky is known to be very difficult for operators, Strawberry ended up buying one Kentucky facility as part of a package of a bunch of homes outside of the Commonwealth. At first, it didn’t have a tenant that wanted to lease the property but then Landmark came onboard.
“Overall the people of Kentucky are amazing, the cities are gorgeous and we really like it, but the regulatory environment for nursing homes is very difficult,” Gubin said. “When they originally leased that first space and said they wanted to grow, we knew we could find some deals of good value.”
The REIT is no stranger to the state. Last May, it acquired Landmark Rehabilitation and Nursing Center of River City, a 92-bed rehabilitation and nursing facility in Louisville., for $6.5 million from Christian Care Centers.
A year earlier, it closed on three HUD guaranteed loans to refinance three skilled nursing facilities operated by The Waters in Tennessee.
Image courtesy of Strawberry Fields REIT