CHICAGO — Evans Senior Investments (ESI) has arranged the sale of a portfolio of three skilled nursing facilities in Massachusetts.
An independent owner-operator seeking to exit long-term care sold the properties to Eagle Arc Partners, an institutional buyer, for $42.5 million, or $111,000 per functional bed/unit.
The portfolio totals 384 licensed skilled nursing beds (359 functional beds). All three communities were located eight to 10 miles north of downtown Boston and have a five-star rating from Medicare.
During the time of marketing, occupancy was 80 percent across the portfolio, with $40.7 million of revenue and a 5 percent net operating income margin. Additionally, the State of Massachusetts instituted new legislation that would eliminate all three- and four-bed wards for skilled nursing communities, which could potentially reduce the portfolio’s licensed number of beds.
“This portfolio presented a great opportunity for Eagle Arc, and its operating platform Stellar Health Group, to expand upon the seller’s outstanding reputation for resident care and demonstrates the premium buyers are willing to pay for high quality assets in new states around the country,” says Jason Stroiman, president and founder of ESI.