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Seven-Property Nursing Home Portfolio Sold by Institutional Property Advisors

May 04, 2017

NEW YORK, May 4, 2017– Institutional Property Advisors (IPA), a division of Marcus & Millichap specializing in serving institutional and major private real estate investors, is pleased to announce the sale of the operating entities controlling the McGuire portfolio, a nursing home portfolio composed of six nursing home operations in New York and in Michigan. There are a total of 1,456 licensed beds in the portfolio.

“The portfolio produces approximately $150 million in annual revenue, and the homes maintain high occupancy,” says IPA’s Mark Myers. “The facilities are rated five-star by, and represent some of the finest nursing homes in the northeastern U.S. In addition, the buyer is retaining the majority of the key employees of McGuire, so the transition will be seamless.”

“Our team has sold many nursing home facilities throughout the state of New York,” says IPA’s Joshua Jandris. “These sales highlight a trend we’re seeing where long-term nursing home facility owners are selling to emerging nursing home companies that are building healthcare facility platforms to attract managed care organizations (MCOs), accountable care organizations (ACOs) and other reimbursement vehicles.”

Myers, Jandris and IPA’s Charles Hilding represented the seller, a private family company, and procured the buyer, a long-term care start-up seeking to grow its operating platform.

“What made this transaction interesting is that it presented a rare opportunity to sell the operating platform without any of the real estate,” adds Myers. “Most often, real estate is sold along with the operations or the real estate is sold subject to existing leases. With this sale, the buyer invested in the leasehold interests.”

J.D. Parker, senior vice president and division manager, is Marcus & Millichap’s broker of record in New York. Steven Chaben, senior vice president, is Marcus & Millichap’s broker of record in Michigan.

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