Evans Senior Investments represented the seller of a 120-bed skilled nursing facility in New Jersey, which traded for $24 million, or $200,000 per bed.
The facility was built in 2000 and has seen multiple renovations since then, with the 65 rooms being private or semi-private. Its residents primarily pay through Medicare and Medicaid.
Occupancy at the time of marketing was 77%, leading to subpar operations for the community. Prior to the pandemic, the community averaged a 90% census with 41 short-term rehabilitation residents contributing to $15.6 million in revenue. But the facility also had a high expense structure and was not very profitable even before the pandemic.
ESI marketed the asset to a select group of regional owners/operators and received competitive bids within 15 days of going to market. The seller is an independent owner/operator who sought to exit the long-term care industry. The buyer is an East Coast-based owner/operator of skilled nursing facilities that wanted to grow their presence in a new market.
