MASSACHUSETTS — Evans Senior Investments (ESI) has negotiated a new tenant for an institutional landlord in the state of Massachusetts, finalizing a five-year lease for a 500-bed skilled nursing portfolio.
The portfolio comprises five communities. Prior to the onset of COVID-19, the portfolio exhibited a stabilized annual revenue of $46 million and a census of 90 percent. At the time of marketing, the portfolio was 76 percent occupied and losing over $2 million in net operating income annually. However, the portfolio’s strong historical performance highlighted great potential to bring occupancy and revenues back up to pre-pandemic levels and higher.
The lease features a purchase option.
The new tenant is a regional operator based on the East Coast. This will be the tenant’s first portfolio of skilled nursing communities, having previously focused on other healthcare real estate properties. A portfolio of this size was the ideal transaction for a new operator without the existing infrastructure, allowing for an immediate presence in the industry and a solid foundation for future growth, according to ESI.