PROVIDENCE, R.I. — Evans Senior Investments (ESI) has arranged the sale of Elderwood at Riverside, a 57-bed skilled nursing facility in Providence.
An East Coast-based owner-operator sold the property to a Southeast-based owner-operator for $4.3 million, or $75,000 per bed. This is the buyer’s first property in Rhode Island.
The seller initially acquired the community, which was built in 1962, with the intent to move the licensed beds to a different county in Rhode Island. When regulatory obstacles prevented moving the licensed beds across county lines the owner decided to exit the property through a sale.
At the time of the sale, the property was 89 percent occupied and had a four-star CMS rating, but was losing over $200,000 a year in net operating income.
“Elderwood at Riverside presented a great opportunity for a new ownership group with operational expertise and synergies in the skilled nursing market to place an emphasis on hospital referrals and to improve upon the expense structure as this community is folded into their portfolio,” says Jason Stroiman, president and founder of ESI.
“The buyer plans to increase the profitability of the community by bringing the previously outsourced housekeeping and laundry operations of the property in-house,” adds Henry Fuller, senior associate at ESI.