A not-for-profit group decided to divest its only skilled nursing facility, citing the difficulty in operating independent SNFs in today’s market. Beth Sholom Village opened in 1980 with 120 licensed skilled nursing beds in Virginia Beach, Virginia. A seniors housing component was added in 2004 that includes 56 assisted living and 18 memory care units, bringing a continuum of care to the campus. Over the years, the campus has also benefited from limited competition and a recent Medicaid rate increase in Virginia. At the time of marketing, it was 93% occupied but operated at just a 3% margin. Its board decided to sell Beth Sholom in order to build a new senior living community that allows them to continue serving seniors in the local vicinity.
So, Evans Senior Investments ran a confidential marketing process and presented several competitive offers to the board, ultimately identifying a Maryland-based owner/operator as the buyer. There could be up to $2.6 million in potential expense savings for a new regional operator with scale, but that will be no easy feat.
