The Harris Hill Nursing Facility in Williamsville, NY features 192 total beds.

NEW YORK CITY—The operating entities controlling the seven-property McGuire Group nursing home portfolio in New York State and Michigan have changed hands. The New York State properties are predominately located in Western New York, with one facility on Long Island, and a Michigan facility in a suburb of Detroit.

In a deal brokered by Institutional Property Advisors, the operating entities managing operations at six nursing homes in New York State and one in Michigan have been acquired by an unnamed long-term care start-up. The seller is The McGuire Group, a Buffalo, NY-based family-owned health care provider. The transaction does not involve the sale of the real estate, solely the operations of the seven nursing home properties that contain 1,456 licensed beds. The individual properties' real estate is owned collectively by an unnamed real estate investment trust, an IPA official told Globest.com

While there was no purchase price released, IPA executive director Mark Myers says the portfolio produces approximately $150 million in annual revenue and maintains a high occupancy of approximately 94%.

The portfolio includes: Harris Hill Nursing Facility (192 total beds) in Williamsville, NY; Garden Gate Health Care Facility in Cheektowaga, NY (184 total beds); Autumn View Health Care Facility (230 total beds) in Hamburg, NY; Northgate Health Care Facility (200 total beds) in Tonawanda, NY; Seneca Health Care Center (160 total beds) in West Seneca, NY; Brookhaven Health Care Facility (160 total beds) in East Patchogue, NY and the Autumn Woods Health Care Facility (330 total beds) in Warren, MI.

“What made this transaction interesting is that it presented a rare opportunity to sell the operating platform without any of the real estate,” Myers says. “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.”

IPA senior director Joshua Jandris adds the brokerage firm is seeing a trend 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 associate director Charles Hilding represented the seller and procured the buyer. 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. IPA is a division of Marcus & Millichap.

The facilities are mostly five-star rated by Medicare.gov, maintain a 37% quality mix (non-Medicaid patient census) and represent some of the finest nursing homes in the northeast US, Myers notes. In addition, the buyer is retaining the majority of the key employees of McGuire, so Myers said the operating transition will be seamless.

Instant Insights /

Nursing Home Portfolio in NY, MI Changes Hands

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