The end-of-year rush of closings continued for Evans Senior Investments, which announced two more 2019 deals. The first involved a 94-bed skilled nursing facility in Lawrenceburg, Indiana (Cincinnati MSA) being sold by a local owner/operator. Built in 1983 and renovated in 2010, the facility was nearly 80% occupied and was operating at an 8% EBITDAR margin at the time of marketing.
However, those financials exclude revenues the facility began earning in 2019 after joining Indiana’s UPL program with a local hospital. Acquired in December 2015, this was the seller’s only facility in the state, so a larger operator could capitalize on not only the new UPL revenue, but scale too. A national owner/operator group saw the opportunity, paying $9 million, or $96,000 per bed.
Then, a regional owner/operator that has been strategically growing in the Atlanta, Georgia market acquired two private pay senior living communities in the area for $12 million, or $123,700 per unit. Built in 1990, the Stockbridge community features 57 units of assisted living that were 90% occupied, with a 25% EBITDAR margin.
Originally built in 1996, the Morrow community had recently converted from a 40-unit assisted living/memory care community to stand-alone memory care. The new units were in the final stages of lease-up, but the community was still profitable. An independent owner/operator hired Evans to sell the properties.
These two deals, plus the portfolio sale in Utah and the property sale in Minnesota made for quite a last week of 2019 for Evans Senior Investments. We hope they made some time to celebrate over the Holidays.
