With more than 4,500 skilled nursing and assisted living beds under management, plus another 2,000 independent living units, Tryko Partners, and its operating affiliate Marquis Health Services, is certainly becoming a senior care powerhouse in the northeast and mid-Atlantic areas. And they keep on adding to their portfolio, even during the pandemic.
Most recently, they purchased a 173-bed facility on six acres in Springfield, Pennsylvania called Harlee Manor and Springfield Commons. The campus is located 12 miles west of downtown Philadelphia, and joins three other Tryko-owned facilities in the greater Philadelphia market. There are 100 skilled beds and 73 personal care units. Overall occupancy for the campus has been around 75%, with the personal care facility running close to 95%. It was built in 2002 and is in good condition, plus the buyer seems some upside in marketing.
The skilled facility is a bit of a different story, and that is where the opportunity will be for Tryko. Built in 1971 with a few additions over the years, it is not certified for Medicaid patients, so about 60% are Medicare, Medicare Advantage and HMO, while the remaining 40% are private pay. To say the facility had been undermanaged for a few years would be an understatement.
The campus will be renamed Springfield Enhanced Senior Living, with the skilled nursing portion called Springfield Rehabilitation and Healthcare Center and the personal care unit will be known as Springfield Crossings. Marquis Health Services will manage the campus, and as part of the rebranding the company intends on investing $2.5 million, or $14,500 per bed, in renovations and specialty care programming enhancements.
Acquisition financing was provided by Christian Montgomery of M&T Bank, which is a repeat partner for Tryko. The seller in the transaction was represented by Charlie and Andrew Hilding of Marcus & Millichap’s IPA Seniors Housing Group.
The day after this announcement, Tryko disclosed that it had been selected as the buyer, out of 12 bidders, to purchase a skilled nursing facility in North Providence, Rhode Island out of receivership. The purchase price for the 200-bed facility is $14.5 million, or $72,500 per bed, and Tryko plans to invest about $5 million, or $25,000 per bed, in renovations and specialty programming enhancements.
Once again, opportunity abounds for Tryko because one wing had been closed because of a lack of staffing, so they will quickly try to fix that problem. And, there had been a ban on admissions, which they will try to lift as soon as possible.
The current name is Hopkins Manor, but will be rebranded as Lincolnwood Rehabilitation & Healthcare Center. Tryko also owns a 206-bed skilled nursing facility in Providence which shares a campus with Roger Williams Medical Center and is next door to the Providence VA Medical Center. This currently owned facility maintains a 90% occupancy rate, which is pretty good for a facility that size.
The sale is being handled by the receiver, Jonathan N. Savage of Shechtman Halperin Savage, which was appointed by the Rhode Island Superior Court. No financing has been arranged yet, and the closing is expected to be sometime in the next two to three months, but it could take longer as a result of COVID-related delays in processing license transfers.
