An independent owner/operator’s only senior care campus in Norwalk, Ohio sold to a regional operator thanks to the guidance of Evans Senior Investments. In the exit, the seller received $7.3 million, or nearly $55,000 per bed/unit, at an 8.9% cap rate, for the campus.
This is not like any senior care campus. The property includes a 112-bed skilled nursing facility, a 21-unit independent living community and an adult day care center open to the public. Spread out across seven buildings, the IL community gets its meals and services from the SNF and operates at a roughly 30% margin at full occupancy. Meanwhile, the SNF (which operates on 110 beds) is just 75% occupied, with a 10% quality mix. We imagine its new owner, with a majority of its facilities in the state of Ohio, will look to use some of those synergies and referral sources to improve operations. The facility is located near regional hospitals and has limited competition, which should help the turnaround.
