by James C. Sherlock
One discerning group of investors in the real estate-with-nursing-home-tenants business appears to hire operating chain-management companies exclusively from those headquartered in the Lakewood, New Jersey, area. The chains compete, but are all run by the same small circle of acquaintances.
That background is meaningful because five of Lakewood-based Medical Facilities of America (MFA)’s facilities in central Virginia are being sold. Not coincidentally, they are among the worst skilled nursing facilities (SNFs) in America:
- Colonial Heights Rehabilitation and Nursing Center (Colonial Heights) of multiple staff arrests for neglect and wrongful death fame,
- Henrico Health and Rehabilitation Center in Highland Springs, officially designated the worst nursing home in Virginia,
- Parham Health Care and Rehab Center in Richmond,
- Wonder City Rehabilitation and Nursing Center in Hopewell, and
- Westport Rehabilitation and Nursing Center in Richmond.
It may not have been up to the CEO of MFA to decide whether to sell those five facilities or to whom. The facilities are likely being sold not because they are awful, which they have been for years, but rather because their occupancy rates have dropped well below the levels that supported the 20% rates of return investors saw in earlier years.
That is cause for celebration in Virginia, but not in Lakewood. It is primarily due to WTVR TV6 Newsโ excellent and dogged reporting since the Colonial Heights scandal in December 2024. We all owe that station and its lead reporter on those stories, Tyler Layne, a major vote of appreciation.
But for investors, it signaled time for a change. They want to be able to advertise โunder new managementโ to residents and regulators to wipe away the mess. It may work.
The owners are changing horses, but not stables.












