ESI Brokers Sale of 180-Bed Skilled Nursing Community in Ohio for $10.8M

OHIO —­ Evans Senior Investments (ESI) has arranged the sale of a 180-bed skilled nursing community in Ohio for $10.8 million, or $60,000 price per bed.

Built in 1965 with a $220,000 renovation in 2019, the community has nine private units with the rest being semi-private occupancy. In fiscal 2019, the community posted $10.3 million in total revenue and 72 percent occupancy. Despite the large revenue generation, the community did not reach industry standard net operating income margins of 12 to 15 percent due to the below-average Medicaid rate and low post-acute rehabilitation census.

Beginning in March 2020, the community’s census began to decline to a low of 43 percent due to bans on admissions and a lack of elective surgeries from hospitals resulting from the COVID-19 pandemic.

“While marketing the community, the state of Ohio issued a $20 per day Medicaid rate increase, which is expected to add an additional $600,000 in revenue for the new operator,” says Henry Fuller, senior associate at ESI.

ESI represented the seller, a regional owner/operator, in the transaction. The buyer was a regional operator that had an existing presence in the state of Ohio.

“The competitive bidding and price per bed paid for a community whose census was below 50 percent showcases the strength of the skilled nursing market today,” says Jeremy Stroiman, CEO of Evans Senior Investments.