The recent senior care deal drought mercifully ended with a closing from Evans Senior Investments, which seems to have figured out how to get a deal across the finish line these days, closing four SNF transactions so far since the onset of the pandemic. The most recent target was a 57-bed skilled nursing facility in East Providence, Rhode Island. Originally built in 1962, it was acquired by the seller, an East Coast owner/operator, with the intent of moving the licensed beds to another county in the state. However, regulatory hurdles prevented that plan from going forward, so an exit was pursued.
At the time of the sale, the facility was 89% occupied, with a 14% quality mix, but was losing about $200,000 in annual net operating income on more than $5.3 million of revenues. It did, however, maintain a four-star rating from CMS. The new owner plans to improve profitability by bringing the housekeeping and laundry services back in-house.
That buyer was a Southeast-based owner/operator of skilled nursing facilities making its first acquisition in Rhode Island. They paid $4.3 million, or about $75,000 per bed, with CNH Finance arranging the acquisition financing.
