SACRAMENTO, FAIR OAKS and CARMICHAEL, Calif. — Ziegler has acted as exclusive financial advisor to Eskaton Properties Inc. on the sale of a skilled nursing portfolio in the greater Sacramento area.
The 391-bed portfolio consists of Eskaton Care Center Fair Oaks, Eskaton Care Center Greenhaven and Eskaton Care Center Manzanita. The communities are in proximity to each other.
Fair Oaks was built in 1983 and has 148 beds on a three-acre lot in Fair Oaks. Greenhaven was built in 1978 and has 148 beds on a 4.92-acre lot in Sacramento. Manzanita was built in 1978 and has 95 beds on a 2.81-acre lot in Carmichael.
Eskaton is a regional nonprofit aging services provider throughout Northern California that has operated for over 50 years.
Eskaton sold the portfolio to Los Angeles-based International Equity Partners (IEP) for $35.6 million, or approximately $91,000 per bed. IEP has emerged as one of the largest owners of long-term care facilities in California, with a portfolio of approximately 100 healthcare facilities comprising over 9,000 licensed beds. IEP’s manager, Cypress Healthcare Group, took over operations on Sep. 29.
“This is an exciting time for Eskaton as we exit the standalone healthcare space, and focus on our future in residential living, affordable housing and home-based services,” says Mark Jenkins, Eskaton’s chief financial officer. “This is not a downsizing exercise, but a pivot towards more sustainable operations in Northern California and beyond. Eskaton is looking to expand its residential living portfolio through management opportunities, affiliations and new development. For home-based services, our goal is to partner with the best providers in our service area to expand our mission.”