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November 2, 2023

Lease Transaction for a Massachusetts Skilled Nursing Portfolio

ESI secured a tenant for an institutional landlord in the state of Massachusetts, finalizing a 5-year lease for the skilled nursing portfolio.


The portfolio is comprised of 5 communities, featuring a total of 500+/- licensed skilled nursing beds. Prior to the onset of Covid-19, the portfolio exhibited a stabilized revenue of $46,000,000+ and a census of 90%. At the time of market, the portfolio was 76% occupied and losing over $2,000,000 in net operating income. However, the portfolio’s strong historical performance highlighted great potential to bring occupancy and revenues back up to pre-pandemic levels and higher. The lease consisted of a 5-year term with a purchase option.

Evans Senior Investments ran a competitive process yielding multiple offers and ultimately selected a regional operator based on the East Coast. This will be the tenants first portfolio of skilled nursing communities and prior to commencing the lease for this portfolio the tenant had experience operating other healthcare real estate properties. A portfolio of this size was the ideal transaction for a new operator without the existing infrastructure, allowing for an immediate presence in the industry and a solid foundation for future growth.

“This portfolio represents ESI’s ability to secure a tenant for a portfolio that was significantly underperforming and created a win-win for both parties to maximize value through a lease to purchase scenario” commented Hank Fuller, Director at ESI.

Many independent owner-operators who are not yet ready to sell should explore the advantages of leasing to a third-party operator. This option offers many financial and operational benefits, including avoidance of capital gains tax and securing passive income. Evans Senior Investments offers tenant advisory as a core service, and can work with any owner to create a tailored solution that will help them succeed.

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