The small portfolio sales keep on coming, with buyers able to stand up to COVID-19 and not let it get in the way of growth. Nancy Herman of Capital Pointe Advisors acted as advisor to The Nugent Group in the sale of a five-facility portfolio in Pennsylvania. The portfolio consists of two skilled nursing facilities, two personal care homes and one new independent living and personal care home community.
One of the skilled nursing facilities, with 105 beds, was built in 1962 and is located in Hermitage. The other nursing facility, located in Sharon, is smaller with 54 beds in 27 semi-private rooms. It is a restored 1958 mansion that was acquired by the seller in 2000 and completely renovated in 2010. The two combined average 95% occupancy or better.
The newest property, built in 2017, consists of 22 independent living units and 69 personal care beds in 43 units. It is located in Mercer and has not yet fully stabilized, providing some upside for the buyer. In Butler, the 60-bed/35-unit personal care home was built in 1966, acquired by Nugent in 2014 and then underwent a major renovation. The fifth property is located in Darlington with 82 personal care beds in 60 units. It was built in stages in 1948, 1984 and 1995. It was then acquired by Nugent in 2011 and underwent a complete renovation in 2013. These last two personal care homes will benefit from increased census. Overall revenues at the time of acquisition for the five combined properties were just under $20 million.
Hana2.0, a privately held real estate partnership, was the buyer, and they are bringing in Embassy Healthcare as the operator under a long-term lease. Embassy, based in Cleveland, Ohio, was founded by Aaron Handler in 1998. He joined forces last year with George Repchick, the former CEO of Saber Healthcare Group. The two partners will be focused on growing the platform through management contracts, leases, acquisitions and new development of skilled nursing facilities and assisted living communities in Ohio, Pennsylvania and Florida. No price was disclosed in the current sale.