VIRGINIA BEACH, Va. — Evans Senior Investments (ESI) has arranged the sale of Beth Sholom Village, a seniors housing community in Virginia Beach.
The seller is a mission-based nonprofit group. A Mayland-based owner-operator was selected as the buyer. The price was not disclosed.
Beth Sholom Village opened in 1980 with 120 licensed skilled nursing beds. The seniors housing component was added in 2004 and includes 56 assisted living and 18 memory care units.
Virginia has an existing certificate of public need to develop new skilled nursing and assisted living communities, protecting the community from new competitors, according to ESI. The community also benefitted from a recent Medicaid rate increase in the state.
At the time of marketing the community was 93 percent occupied. However, it was only operating at a 3 percent net operating income margin. The seller opted to divest of Beth Sholom in order to construct a new senior living community.
“ESI highlighted a $2.6 million potential expense savings that exists for a new regional operator, which the seller had not been able to achieve due to its lack of scale,” says Hank Fuller, senior associate at ESI.