The time came for a private equity firm to exit their investment in Shaker Heights, Ohio (Cleveland MSA), only after investing in substantial renovations and stabilizing the census. Situated downtown near a brand-new commercial development, the community was built in 1995 and features 122 assisted living and 50 licensed skilled nursing beds. It was originally acquired by the PE firm in 2012 as a value-add opportunity and has since improved its operations, with occupancy climbing from around 70% to 85%.

Operations at the assisted living community in particular improved dramatically, as a steadier stream of residents who were enrolled in Ohio’s Assisted Living Waiver Program (now representing 70% of the AL residents) boosted census and revenues.  In addition, a $4.5 million capital improvements program saw the substantial renovation of all common areas as well as resident rooms and bathrooms.

A well-capitalized New York-based owner/operator paid $13.5 million, or $78,500 per bed, for the community, and also makes its debut in the state. Ben Firestone, Michael Segal and Connor Doherty of Blueprint Healthcare Real Estate Advisors handled the transaction.