ESI Arranges Sale of Three-Property Portfolio in Pennsylvania for $39M

by Jeff Shaw

PENNSYLVANIA — Evans Senior Investments (ESI) has arranged the exit from the long-term care industry for a Pennsylvania owner-operator.

The portfolio consisted of three properties comprising of 395 beds of skilled nursing and 32 units of private-pay seniors housing. The purchase price was $39 million, or $91,000 per functional bed/unit.

At the time of marketing, the average census was 64 percent with total portfolio revenue of $27.2 million and net operating income loss of -$1.5 million, or a -5 percent net operating income margin. While under contract, census reached a low of 57 percent as a result of regulatory deficiencies and staffing shortages.

The buyer was a regional owner-operator looking to grow its skilled nursing presence in the state of Pennsylvania.

“The ESI Team was successfully able to showcase how a new regional owner-operator could eliminate the agency staffing issues by utilizing its regional recruiting network” says Henry Fuller, senior associate at ESI.

“ESI was successfully able to navigate headwinds of regulatory deficiencies, declining financial performance and union negotiations all while keeping the purchase price the same as the original letter of intent,” adds Jason Stroiman, president and founder of ESI.

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