INDIANA — Evans Senior Investments (ESI) has arranged the sale of a 186-bed skilled nursing community in Indiana for $25 million, or $134,000 per bed.
An independent owner-operator seeking to exit the long-term care industry sold the asset to a regional operator. The name of the facility was not disclosed.
Built in the last 50 years, the community exhibited a large number of private rooms with all units being private or semi-private occupancy. Additionally, the community had a five-star Medicare rating and has historically been over 85 percent occupied.
Despite the strong performance prior to the COVID pandemic, the community was not profitable at the time of marketing the offering, with census averaging 72 percent. Contributing to the operating losses was the above-average expense structure at the community, as the property was the seller’s only skilled nursing facility.
“ESI was able to showcase the expense restructuring opportunity that would save a new regional operator $1 million annually,” says Henry Fuller, senior associate at ESI.
“This sale represented an opportunity for a regional operator to expand their presence in the state of Indiana and showcases why buyers in today’s market are paying a premium for underperforming communities,” adds Jason Stroiman, president and founder of ESI.