BEAVER, PA—The Friendship Ridge nursing home here has been sold by Beaver County to a private consortium for $33.5 million.

The deal for the 605-bed facility was announced by Institutional Property Advisors, a brokerage division of Marcus & Millichap. Friendship Ridge, which has been operating since 1959, is located on 25 acres at 246 Friendship Circle in Beaver, Pa. Additional acreage is available for expansion, IPA officials say.

IPA's senior director Joshua Jandris, executive director Mark Myers, associate Charles Hilding and vice-president Matthew Gorman in Marcus & Millichap's Philadelphia office, represented Beaver County in the transaction. The private consortium buyer of owners and investors are based in New Jersey and New York.

“The new ownership group has more than 50 years' experience in long-term care and is eager to begin operating in Pennsylvania with Friendship Ridge as its initial investment,” says Jandris. “The state's strong reimbursement system is especially attractive for investors from New Jersey and New York where the introduction of managed Medicare is creating uncertainty.”

“The opportunity to acquire a large concentration of beds in a major Pennsylvania metropolitan area generated significant interest in the property,” Myers notes. “The asset's large size means that incremental revenue increases and expense management strategies can greatly impact the bottom line.”