It was a productive summer for Eads Investment Brokerage, which closed four deals across four states and nine properties. There was a mix of seniors housing and skilled nursing assets, as well as seller types. The first deal, a June closing, featured Johnson Christian Village, a senior living community 25 miles south of Bloomington, Indiana. An out-of-state, faith-based not-for-profit sold the property to a local investor that has experience in managing Indiana Medicaid waiver programs.
Around the same time, Eads also sold a recently renovated skilled nursing facility in Des Moines, Iowa. The out-of-state operator was divesting the property in order to focus on its core markets, but the facility was trending positively with a growing census and improvement reimbursement environment. A publicly-traded company making its first acquisition in Iowa in over a decade paid more than $70,000 per bed at a 1.2x price-to-revenue ratio for the facility.
Closing out the summer, Eads handled the sale of a 244-unit, six-property supportive living portfolio in southern Illinois. The $33 million, or $135,200 per unit, purchase price resulted in a cap rate just under 9% at the time of marketing, but profitability and census continued to improve through closing. Vintages ranged from 2004 to 2010, with the two smaller memory care communities opening in 2020. The seller, a small Illinois-based developer, sold the communities to a growing supportive living operator based in Chicago.
Finally, Eads sold another senior care facility in Missouri on behalf of a not-for-profit owner. Located in a suburb of Kansas City, the campus features 126 beds of skilled nursing and 55 units of assisted living. It sold for $6.25 million, or $34,500 per bed/unit, at a 0.75x multiple based on $8.3 million of annualized 2024 revenues. The Missouri-based buyer sees significant operational upside from this standalone non-profit provider that had faced immense fiscal challenges.
