Not-for-profit senior living organization Eskaton announced that it was exiting its only standalone skilled nursing assets, totaling three properties in the Sacramento, California area. The facilities were Eskaton Care Center Manzanita, Eskaton Care Center Greenhaven and Eskaton Care Center Fair Oaks, which are selling for a combined $35.64 million, or $90,000 per bed.
Built in the late-1970s and early 1980s, the portfolio totaled 396 beds and generated more than $42 million in 2022 revenues, according to a notice filed for the California Attorney General. However, occupancy was around 70% across the facilities, and each reported large operational losses in 2022. Eskaton employees were notified of the pending sale in mid-January.
The deal will allow Eskaton to strengthen its residential living, affordable housing and home-based services, plus enable expansion across Northern California through management or affiliation with existing non-profit residential living providers. Dan Revie of Ziegler represented Eskaton in the transaction, and the not-for-profit ultimately selected a local operator, Cypress Healthcare Group headquartered in Roseville, California, with International Equity Partners (IEP), a Los Angeles-based investment company that operates facilities throughout California, as a capital partner. The transition process will require Attorney General approval and will take most of the year to complete.
According to the AG notice, Eskaton received two offers that were higher than IEP’s, but those operators did not have experience operating SNFs in California and were less familiar with the Sacramento area.
