Evans Senior Investments (ESI) closed the sale of a 180-bed skilled nursing facility in Ohio for $10.75 million, or $60,000 per bed. Built in 1965 with a $220,000 renovation in 2019, the facility has nine private units with the rest being semi-private occupancy. In 2019, the facility posted $10.3 million in total revenue and 72% occupancy. Despite the large revenue generation, the facility was not very profitable due to the below average Medicaid rate and low post-acute rehabilitation census. Beginning in March 2020, the facility’s census began to decline to a low of 43% due to bans on admissions and a lack of elective surgeries from hospitals resulting from the pandemic.
ESI represented the seller, a regional owner/operator. The buyer was a regional operator who had an existing presence in the state of Ohio. Recently, the state of Ohio issued a $20.00 per day Medicaid rate increase which is expected to add an additional $600,000 in revenue for the new operator.
This is the first closing of 2022 for ESI, which just concluded the busiest year in the brokerage firm’s history, closing over $870 million in deal volume.
