In a notable real estate transaction within the healthcare sector, Rego Park Health Care, a Queens-based nursing home, has been acquired by a limited liability company associated with Pinnacle Group of Hudson Valley for a substantial sum of $56 million. The facility, which stands on 111-26 Corona Avenue, provides a plethora of services including 24-hour nursing care, short-term rehabilitation, and respite care for primary caregivers in need of temporary relief, according to Crain's New York.
Israel Nachfolger, CEO of Pinnacle Group, known for operating several nursing homes across Maine, Massachusetts, and New York, has confirmed that the 200-bed residential building, along with two adjacent lots, has been added to his company's portfolio which includes roughly 10 nursing homes on the East Coast, five of which are located in New York, this entity shares an address with the Pinnacle Group of Hudson Valley as reported by the The Real Deal.
The previous owner, Nelson Tuchman, who had purchased the property for $3.3 million in 2008, was not available for comment on the sale, meanwhile, a representative from the purchasing entity declined to comment when approached by the Commercial Observer. The transition of ownership comes at a time when New York nursing homes face multiple pressures including low Medicaid reimbursements and staffing shortages, per industry reports, these challenges have led to numerous facilities shuttering over the last decade with some owners opting to sell off their operations.
Despite these challenges, the nursing home market appears to attract investor interest given the steady occupancy rates and increasing demand amidst an aging population, such was the case last year when Sentosa Care CEO Ben Landa divested a 183-bed facility in Far Rockaway for north of $258,000 per bed despite having invested at a comparatively low cost, in an acquisition reminiscent of Tuchman's initial purchase, through his New Surfside Realty entity.
As for the Rego Park Health Care facility, it will continue its operations leasing the space from its new owner Pinnacle Group of Hudson Valley, confirmed Israel Nachfolger, who also mentioned that while there are currently no plans for the development of the adjacent lots, one which serves as a parking lot, the primary function of the establishment as a nursing home shall persist; this is a reassuring note given the recent volatility in the sector highlighted by the tumultuous situation at a different nursing home which faced bankruptcy and an "emergency evacuation,” potentially displacing hundreds of residents earlier this year.
