Evans Senior Investments secured a tenant for a portfolio of five skilled nursing facilities in Massachusetts on behalf of an institutional landlord. The portfolio features a total of 500 licensed beds at 76% occupancy. Prior to the pandemic, the portfolio generated stabilized revenue of $46 million at 90% occupancy, but now it is losing over $2 million in NOI.
Therein lies the opportunity for the incoming operator, a regional group based on the East Coast, which agreed to a five-year lease with a purchase option. If they are successful, we imagine it would be a very attractive acquisition for them.
Evans Senior Investments ran a competitive process yielding multiple offers. This will be the tenant’s first portfolio of skilled nursing facilities, but prior to commencing the lease, it had experience operating other healthcare real estate properties.
