Evans Senior Investments arranged one of the larger deals of the month with the sale of a Connecticut skilled nursing portfolio comprising eight skilled nursing facilities in the Hartford MSA. The transaction, executed on behalf of a West Coast-based REIT, later revealed to be Summit Healthcare REIT, amounted to $60.0 million, or $54,000 per bed, for the real estate only. The existing operator, iCare Health Network, was chosen as the buyer.
The facilities include Touchpoints at Manchester (Manchester), Westside Care Center (Manchester), Trinity Hill Care Center (Hartford), Chelsea Place Care Center (Hartford), Silver Springs Care Center (Meriden), Touchpoints at Bloomfield (Bloomfield), Touchpoints at Chestnut (East Windsor) and Fresh River Healthcare (East Windsor). The facilities were built between 1966 and 1990 and feature a total of 1,106 beds. When thinking of the aging of the inventory in the United States, note that these were all built 35 to 55 years ago. The portfolio has an average 4-star CMS rating across all eight facilities. During marketing, the portfolio’s average census was 90%. Additionally, there was anticipation of a large Medicaid rate increase that would take effect in July.
ESI conducted a confidential marketing process, procuring over 10 offers in under a month. There was a competitive bidding environment, which ultimately added substantial value to the closing price. The transaction closed within four months of ESI’s marketing campaign. The sale of the portfolio was subject to a triple net lease with the existing operator, with an additional 8.5 years remaining and two five-year renewal options.
