CHICAGO — Evans Senior Investments (ESI), a Chicago-based broker, has arranged three separate sales transactions totaling $150 million. The dispositions allow the seller, a Pennsylvania-based owner-operator, to fully exit the seniors housing industry.
The first tranche of the portfolio consisted of four communities totaling 661 licensed skilled nursing beds and 88 independent living cottage units. At the time of marketing the average census was 74 percent with total portfolio revenue of $48 million and net operating income of $2.3 million. The buyer was a regional owner-operator looking to grow its skilled nursing presence in Pennsylvania.
“The ability for the skilled nursing market to acquire communities based on pro-forma valuations and obtain financing without sufficient in-place cashflow demonstrates the strength of the marketplace today,” says Henry Fuller, senior associate at ESI.
The second tranche of the portfolio consisted of an entrance-fee CCRC campus located in Langhorne, consisting of 179 skilled nursing beds, 134 independent living units, 81 personal care units and 21 memory care units. At the time of marketing, the average census for the campus was 74 percent with total campus revenue of $24.8 million and net operating income of $1.4 million. The buyer was a New Jersey-based owner-operator of both skilled nursing and senior living communities.
The final transaction of the portfolio represented a standalone personal care community located in York. Built in 1984 with a memory care conversion in the last five years, the property consisted of 84 personal care units and 16 memory care units. The community was not performing at the time of marketing as census was 70 percent with revenue of $4 million and a negative net operating income. The same regional owner-operator acquired the asset, and is leasing it to an East Coast-based operator.