Investor Bought Four Virginia Nursing Homes for $165M
The properties transitioned to a New York buyer and feature management by Prestige Healthcare.
Updated on Oct. 12, 2026 in Healthcare
Live Poll
Do you trust large private companies to prioritize patient care over profits in local nursing homes?
Between August and September 2026, four Virginia nursing home facilities were sold for a total of $165.2 million to entities linked to Brooklyn-based investor David Katz. Medical Facilities of America transferred ownership of the properties, which are now managed by Prestige Healthcare Administrative Services.
Why it matters
The transition involves facilities with complex operational histories, including the Colonial Heights location where staff faced criminal charges following a 2024 patient death. For local operators, the consolidation underscores the high capital velocity and regulatory risk inherent in nursing home management.
The portfolio sold for a combined $165.2 million, including the $56.3 million Forest Avenue site and the $49 million Colonial Heights location. The assets are part of a broader network managed by Prestige Healthcare, which oversees approximately 20 facilities.
The players
David Katz
A Brooklyn-based investor who acquired a portfolio of nursing homes through various LLCs.
Prestige Healthcare Administrative Services
An operator that manages approximately 20 nursing home facilities across the region.
Medical Facilities of America
The former owner and seller of the four nursing home properties in Virginia.
The details
Ownership was transferred through four distinct LLCs, a common structure used to isolate liability across multi-facility nursing home portfolios. Management of the daily clinical and administrative operations transitioned to Prestige Healthcare Administrative Services, which currently manages 20 facilities. The move follows a period of intense scrutiny at the Colonial Heights location after state investigations into elder abuse and neglect.
Timeline
August 6, 2026: The Colonial Heights property sale closed.
August 13, 2026: The Hopewell property sale closed.
September 3, 2026: The two Henrico County property sales closed.
Market Landscape
This acquisition follows the 2024 elder abuse investigation at the Colonial Heights facility, marking a shift in property ownership despite the facility's recent operational challenges. The deal reflects a broader trend of private investment groups acquiring skilled nursing assets while offloading operational management.
Operators in the skilled nursing sector should monitor these assets for changes in staffing protocols or clinical quality metrics following the management transition. Ensure your liability insurance and compliance monitoring reflect the high-risk nature of managing facilities with recent regulatory findings.
The takeaway
Nursing home transactions frequently involve complex, multi-entity structures that isolate assets from prior clinical or legal liabilities. Owners should maintain strict oversight of the management agreements governing these properties to ensure performance expectations are met.
Further reading
For more on industry shifts, see Healthcare.
Source note: This article includes information reported by Richmond BizSense.
Live Poll
Do you trust large private companies to prioritize patient care over profits in local nursing homes?
