Evans Senior Investments (ESI) showed its range in closing three transactions across the country, totaling over $20 million. First, in its home state of Illinois, ESI represented the seller, an independent owner/operator, in the sale/leaseback of its 30-unit assisted living community in Winnebago (near Rockford, Illinois) for $4 million, or $133,300 per unit. Just 10 years old, the community was operating well, with 97% occupancy, 100% private pay census, and a 33% operating margin on about $1.225 million of revenues. A publicly traded REIT added the property into a master lease in which the seller already managed other communities on behalf of the REIT.
Moving South, ESI handled the sale of a 138-unit private pay independent living/assisted living community in Bowling Green, Kentucky. Similar to the Illinois transaction, the community was owned by an independent owner/operator and operated very well. With 92 IL and 46 AL units (although all are licensed for assisted living), it was 93% occupied with a 30% operating margin on about $3.0 million of revenues. To add value, the new owner, a private equity firm based in New York City, and its operating partner, Charter Senior Living, could look to use the existing AL license and increase acuity. The PE firm paid $10.4 million, or about $75,360 per unit, for the community, with an 8.8% cap rate.
Finally, Evans Senior Investments made its way out to Montana to sell a skilled nursing facility in Butte. Built in 1978 with a significant renovation in 2008, the facility is licensed for 186 beds but only operates 98 beds. The facility has limited competition, however, and a publicly traded REIT stepped in to purchase it, and hopefully add value. Eduro Healthcare, a regional operator with facilities in Wisconsin, Colorado and Utah, will manage the facility, its first in the Mountain State. Representing the independent owner/operator seller, ESI sold the property for $5.7 million, or just over $58,000 per functional bed.