Evans Senior Investments successfully sold a skilled nursing facility in Dover, Delaware. Courtland Manor was previously owned by an independent owner/operator that was represented by the Evans team.
Built in 1986, the 70-bed facility boasted a consistent five-star CMS rating. It also maintained high occupancy rates, in the high 80% range prior to the pandemic and never dropping below 70% after it. But the owner decided it was a good time to exit the long-term care industry. They may have been right, with SNF values staying above pre-pandemic prices, on average, according to the recently released 29th Edition of The Senior Care Acquisition Report. Facilities with positive cash flow also commanded a premium, per the Report, and Courtland Manor was 80% occupied, generating over $6.3 million in annual revenue with a net operating income of approximately $320,000, for a 5% margin. That could certainly be improved, but the new owner is coming into a profitable operation. Limited competition in the area will help, plus new ownership with some economies of scale.
Evans presented seven competitive offers to the seller before an owner/operator based out of New York was selected as the buyer. The purchase price was $10.0 million, or $142,900 per bed.
