Evans Senior Investments was brought on by an independent owner/operator to arrange the sale of a skilled nursing facility that was built in 1968 and is in Fort Collins, Colorado. The seller owned and operated the facility for about 20 years, with it as their only SNF. Like so many other independent owner/operators, they were impacted by the difficulties of today’s operating environment as well as a lack of economies of scale. Making the decision to exit the long-term care industry, the owner/operator divested.
There was a competitive marketing process, and at the time of marketing, occupancy was 68%. The facility was generating over $7.5 million in annual revenue, with a loss of over -$500,000. Evans emphasized the higher census of competitors in the area, and showcased the potential impact that Fort Collins’ network of hospitals could have. Furthermore, Evans marketed the state’s recent Medicaid rate increase that was projected to add over $450,000 in revenue beginning in July. The buyer was a West Coast-based operator with an existing presence in the state. The transaction resulted in a $7.6 million purchase price, or, around $79,200 per bed.
