Evans Senior Investments sold a portfolio of three senior care assets in Indiana. Built in 1982 and 1995, the properties offered a continuum of care for seniors housing and skilled nursing residents. One property was a CCRC with 34 seniors housing units and 137 licensed skilled nursing beds (operating at 128 beds). The SNF portion was consistently occupied in the low-90s, while the seniors housing portion hovered in the high-80s and low-90s. The other two were located on the same campus and offer a combined 63 independent living, assisted living and memory care units and 127 licensed skilled nursing beds. Again, the SNF portion saw stronger census, from the mid- to high-80s, while the seniors housing units were declining in occupancy.
Historically, the properties operated above 2.0x lease coverage, and with the current lease in place, a number of buyers were interested in coming in as the new landlord with minimal risk. However, the current tenant ultimately executed on their right of first refusal to acquire the portfolio, paying $29 million, or $97,000 per unit. The operator plans to make extensive renovations to the properties to better serve the residents in the local submarkets.
