A newly renovated senior care facility in Dayton, Ohio that was struggling with census issues sold to a Midwest-based owner/operator with the help of the team at Evans Senior Investments. Featuring 60 skilled nursing beds and 30 assisted living units, the facility was previously owned by an independent owner/operator looking to exit the long-term care industry. It was originally built in 1988 but received a $1.3 million renovation from 2019 to 2020.
The updated physical plant and number of private rooms certainly helped its attractiveness, but the facility was averaging just 37% occupancy at the SNF and 45% in the assisted living portion. Plus, the previous owner had not licensed the SNF for Medicaid, only taking private pay and Medicare patients. The pause in elective surgeries during the pandemic caused census to plummet, and the facility was losing over $1.5 million in NOI on about $5.2 million of revenues at the time of marketing last fall.
Evans marketed the facility as an opportunity to acquire a newly renovated facility that could be licensed and (ideally) filled with Medicaid patients. Indeed, the facility was approved for an interim skilled nursing Medicaid license for the COVID-19 pandemic, and the owner can apply for a permanent license with the state. That Midwest buyer, which was looking to grow its presence in the Dayton market, paid $6 million, or $67,000 per functional bed/unit.
