Skilled nursing facility prices may have tempered from their peak in 2016 (we hosted a webinar on the very subject last month), but Evans Senior Investments bucked that trend by selling a pair of New Jersey skilled nursing facilities for $31.5 million, or nearly $190,000 per bed. The facilities’ locations probably had the most impact on that high price, as they were located just 16 miles apart in Ridgewood and Montclair, just outside of New York City.
Other factors would normally suggest a lower price, however. Both were originally built in the 1960s but have received updates in the last five years. Occupancy averaged in the mid-80s, with one facility reporting a 50% quality mix while the other was just 21%. Based on adjusted EBITDA, the operating margin was about 12% on revenues of $23.65 million.
The new owner, a New York-based private equity group, plans to improve that margin and increase occupancy, bringing in a New Jersey-based operator to manage the turnaround. Evans Senior Investments represented the independent owner/operator seller in the high-priced transaction.
