ROCHESTER, Pa. — Evans Senior Investments (ESI) has arranged the sale of Rochester Manor + Villa, a 122-bed skilled nursing and 62-unit personal care community in Rochester, approximately 25 miles northwest of Pittsburgh.
An independent owner-operator seeking to exit the industry sold the property an East Coast-based owner-operator looking to expand for $9.2 million, or $64,000 per functional bed/unit.
Built in 1965 with a $2.5 million renovation from 2015 to 2019, the community features all private or semi-private rooms. Occupancy averaged 69 percent at the time of sale, with an annual net operating income loss of $1 million. Additionally, of the 62 Personal Care units at the community only 22 were currently operational as capital improvements were needed to bring the 40 offline units into operation.
“The competitive bidding process for a community losing over $1 million per year prior to paying its debt service showcases the strength of the skilled nursing market today,” says Henry Fuller, senior associate at ESI.