CHICAGO — Evans Senior Investments (ESI), a Chicago-based broker, has arranged the sale of eight skilled nursing facilities in Ohio.
An Ohio-based owner-operator sold the assets to a regional owner-operator looking to grow in the state. The price was $70 million, or $90,000 per functional bed/unit.
The portfolio totals 623 licensed skilled nursing beds (614 functional beds), 22 independent living units and 176 licensed assisted living beds (140 functional beds).
“While under contract the portfolio received a large Medicaid rate increase of almost $30 per patient day,” says Henry Fuller, senior associate at ESI. “This Medicaid rate increase will boost the performance of the portfolio for the new ownership group in 2022 and will add an additional $2,500,000 in revenue.”
The portfolio represented a strategic disposition of non-core assets in tertiary markets on behalf of the seller.
“The strength of the acquisition market and ability for purchasers to obtain pro-forma financing at high loan-to-value [ratios] demonstrates the continued strength of the acquisition market today, even with the headwinds from the new Omicron COVID-19 variant,” says Jeremy Stroiman, CEO of ESI.