An institutional owner decided to divest its skilled nursing facility in East Boston, Massachusetts, in order to recycle capital and shift its investment focus. Evans Senior Investments marketed the facility to a group of regional and national buyers before an experienced regional operator stepped in to make its first purchase of a facility, for an undisclosed price. Evans helped the new owner by facilitating a regional capital partner for the deal.
Built more than 50 years ago, the facility featured 165 beds, including a number of three-bed wards. It was 83% occupied but held a two-star CMS rating with an abuse icon from CMS. Other operational challenges included high agency staffing costs, an underutilized adult day care center and a potential (but currently non-existent) dialysis center. On the other hand, the facility was located near 12 major hospitals and could benefit from the state’s acuity-based PDPM payment model. It also recently secured a behavioral health contract, improving its future prospects.
