Eads Investment Brokerage represented a regional not-for-profit in the sale of its skilled nursing and independent living campus in Southern Illinois. The primarily SNF campus consists of 167 beds and units (156 SNF beds and 11 IL units). Despite occupancy falling under 70%, revenues exceeded $10.5 million and were trending positively. The campus was operating near breakeven prior to the pandemic, and ownership recently began to mitigate their losses, which stood at more than $1 million per year.
So, a sale would help stabilize its portfolio and add some needed liquidity to further the mission in other communities. While the campus also offered assisted living, that standalone (and well performing) supportive living building is being retained by the seller due to its tax credit obligations.
A regional operator with efficiencies in the immediate market emerged as the buyer, paying approximately $5.22 million, or $31,250 per licensed bed, or a roughly 0.50x GIM. This is the third not-for-profit campus sold by Eads Investment Brokerage in the past year.
