We are scheduled to acquire this 83-bed facility in early 2018. The facility is currently under a moratorium from the State of North Carolina from accepting new residents. The state placed a moratorium on acceptance of new residents for maintenance related matters. The cost of the necessary repairs is approximately $250,000.
The facility has an additional building that will also be acquired that was constructed with the intent of providing space for an additional 20 beds. Our plan is to petition the state for an additional 20 memory care units for this building. The facility is licensed for 63 geriatric and 20 memory care beds.
An increase in the facility’s value over our purchase price will result from making the necessary repairs, performing a shallow rehab to freshen the appeal of the facility, and satisfying the states noted deficiencies regarding the maintenance of the facility and the furnishings allow the facility to accept additional residents. We anticipate that we will be able to regain the historical occupancy levels of this facility within 6 months which will increase its value by 70%. In addition, the facility previously had an additional 17 beds licensed that the current owner relinquished. We plan to petition the state for reinstatement of the additional beds as special needs.
 |
 |
 |