An Ohio-based owner/operator bought a Pittsburgh-area skilled nursing facility in a deal arranged by Evans Senior Investments. Built in 1995 and maintaining a four-star rating, this 120-bed facility was locally owned and operated. However, this was the seller’s only skilled nursing facility, and occupancy stood at just 72%. High expenses also resulted in barely $50,000 of NOI on about $8.93 million of revenues, and performance was declining.
So, Evans ran a confidential marketing process to a group of regional owner/operators and obtained six competitive offers within 30 days. An Ohio-based owner/operator wishing to grow its presence in Pennsylvania ended up as the buyer, paying $9.65 million, or about $80,400 per bed.