Encompassing three assets total, the senior living and skilled nursing portfolio sold for $29,000,000 or $97,000 per bed/unit. 

Built in 1982 and 1995, all three properties provide top-of-the-line accommodations and a continuum of care for seniors housing and skilled nursing residents. At the time of marketing, the portfolio was being leased to an Indiana-based regional operator, who had approximately ten years remaining on their current triple net lease. 

After only a few weeks of being on the market, ESI presented the client with several competitive offers from regional owners and private equity groups looking to acquire the property interest in the portfolio. However, the current tenant was determined to come out on top as the new ownership group and ultimately executed their right of first refusal to acquire the portfolio.

“Historically operating above a 2.0 lease coverage ratio, the portfolio proved to be a highly attractive investment to buyers during the marketing process,” commented Evan Jakobsze, Analyst at ESI. "With the current lease in place, many groups were interested in stepping in as the landlord with very minimal risk and the chance to bring substantial returns to their investors."

The operator plans to make extensive renovations to the properties to better serve the residents in these local submarkets. Indiana has seen a lot of activity from ESI in recent years, with the ESI team closing over $200M in transaction volume in the state.