ESI was engaged by the owner to identify a new operating partner for the 120-bed community.

Following a targeted and competitive process, ESI secured an annual rent of $3,750,000,

equating to approximately $2,600 per bed per month. The incoming operator brings a strong

regional footprint and is well positioned to seamlessly assume operations and continue

delivering high-quality care to the local community.

Despite a difficult macroeconomic and regulatory backdrop, ESI effectively guided the

transaction through the marketing and diligence phases, addressing obstacles such as the

federal government shutdown, California regulatory approvals, and the HUD Change of

Operator (CHOP) process. Despite these headwinds, ESI remained steadfast in its execution,

working closely with all parties to maintain momentum and successfully guide the transaction

through closing.

Owner Don Gormly commented on the transaction: “Working with ESI was a smooth and

professional experience. They stayed engaged every step of the way and consistently found

solutions to keep the process moving forward. We’re grateful for their work and excited about

the future of the facility under its new operating partner and we would gladly partner with ESI

again and recommend them to others.”