Toby Siefert and Ryan Saul of Senior Living Investment Brokerage handled the sale of a Type C CCRC in Erie, Pennsylvania, working on behalf of the local not-for-profit seller. The original building was constructed in 1929, but the campus has undergone numerous additions and renovations over the years, most recently in 2010. It now has 139 skilled nursing beds and 58 residential/personal care beds in 29 units. Even though there are no independent living units, the CCRC designation is particular to Pennsylvania licensing.
Currently, 100 of the skilled beds are used for skilled nursing (and they are dually certified), while 39 beds are in a separate building dedicated to memory care, which is only Medicaid certified. The personal care portion is licensed for 131 beds, but the oldest 62-unit building on campus is out of service. So, the campus is not exactly running at capacity. Occupancy as of June 2020 was 88% at the SNF, which also boasts a five-star rating from CMS, and 86% for the personal care units. The campus generated over $100,000 in EBITDAR on nearly $14.85 million of revenues.
The seller chose to focus on its other campus, which is an entrance fee CCRC. SLIB procured several offers, ultimately landing on a regional owner/operator with other SNFs in the region. However, this is their first acquisition in Pennsylvania. They will focus on improving occupancy, which we imagine dipped from those June 2020 levels, and the quality mix. The purchase price was not disclosed.
