Evans Senior Investments has announced a slew of closings, including a three-transaction portfolio deal and a separate assisted living community. The separate community, Main Street Senior Living in Hendersonville, Tennessee, sold for $5 million, or $86,000 per unit. Built in 2000, the 58-unit community is located in the Nashville suburban area and provides assisted living and memory care services.
Main Street had a 62% occupancy rate and $1.53 million in revenue at the time of marketing, with 100% private pay residents. However, it was not profitable and lost over $900,000 in NOI over the last 12 months. A Southeast regional owner/operator purchased the community to expand its seniors housing presence in Tennessee. The owner plans to expand the community into the excess land adjacent to the property. ESI represented the seller, a private equity firm.
ESI then represented a Pennsylvania owner/operator for the sale of all eight of their communities across three separate transactions. The seller was looking to exit the long-term care industry. Combined, the portfolio sold for $150 million, or $121,000 per functional bed/unit.
The first tranche of the portfolio consisted of four communities spanning 661 skilled nursing beds (632 functional beds) and 88 independent living cottage units. Census averaged at 74% and total portfolio revenue was $48 million at the time of the sale. The communities had a combined net operating income of $2.3 million, or 5% NOI margin. Census under contract hit a low of 68% due to a ban on admissions resulting from the pandemic, and a lack of elective surgeries from hospitals. A regional owner/operator looking to grow its skilled nursing presence in Pennsylvania purchased the communities.
The second tranche of communities consisted of an entrance fee CCRC campus in Langhorne, Pennsylvania comprising 179 skilled nursing beds, 134 independent living units, 81 personal care units and 21 memory care units. Census for the campus was 74% at the time of marketing, and revenues reached $24.8 million. The community had a net operating income of $1.4 million, or 5% net operating income margin. A New Jersey-based owner/operator of both skilled nursing and seniors housing communities acquired the property.
The third and final transaction was the sale of a standalone personal care community in York, Pennsylvania. Built in 1984 with memory care conversion in the last five years, the community contains 84 personal care units and 16 memory care units. The community was underperforming at the time of marketing, with a census of 70%, revenue of $4 million and net operating income of -$289,000. The regional owner/operator from the first tranche also purchased this community and intended to operate it, but the buyer lacked experience operating seniors housing communities so a separate tenant was secured for the property. An East Coast-based operator will manage the community.
