A Louisiana-based owner/operator looking to exit the long-term care industry has sold a portfolio of five skilled nursing facilities with the help of Evans Senior Investments. The portfolio, which ranges in age from 10 to 25 years old (with the exception of one property), was sold across three separate transactions.
First, a 130-bed SNF sold in Rayne, Louisiana for $14 million, or $108,000 per functional bed. While the facility is licensed for 130 beds, it has an additional 54 banked beds that could be used for an expansion in the future. The property generated revenues of $8.5 million and NOI of $1.1 million at the time of marketing, and had a 71% occupancy. A regional owner/operator looking to grow their skilled nursing presence in Louisiana was selected as the buyer, acquiring the facility at a 7.9% cap rate.
In the second transaction, a 132-bed SNF in Baton Rouge, Louisiana sold to a regional owner/operator for $12 million, or $91,000 per bed. At the time of marketing, the average census for the facility was 68% with revenue of $6.5 million and NOI of $1.1 million, resulting in a 9.2% cap rate. This property was the oldest of the portfolio being built in 1973, and consisted mostly of a Medicaid and Veterans Administration resident base.
Three SNFs built between 1996 and 2011 comprised the final tranche of the portfolio, and were sold to a regional owner/operator looking to enter the Lafayette, Louisiana market. The facilities consist of 428 skilled nursing beds, 32 assisted living units, and 56 banked skilled nursing beds for a future expansion opportunity. At the time of marketing, the portfolio had a census of 83%, revenue of $36.5 million and an NOI of $6.8 million. One of the facilities also recently opened a ventilator unit and dialysis program which will add additional reimbursement revenue for the new operator. Sold for $73 million, or $159,000 per functional bed, at a 9.3% cap rate, this tranche of the portfolio matches the highest price per bed SNF transaction ever sold in Louisiana. The matching transaction was also sold by the ESI team earlier this fall.
