The portfolio consisted of three properties comprising of 395 beds of Skilled Nursing and 32 units of Senior Housing. The purchase price was $39,000,000 or $91,000 per functional bed/unit.
At the time of marketing, the average census was 64% with total portfolio revenue of $27,200,000 and net operating income of -$1,500,000 or a -5% net operating income margin. While under contract, census reached a low of 57% as a result of regulatory deficiencies and staffing shortages. The ESI team ran a selective and confidential marketing process ultimately securing a regional owner/operator looking to grow their skilled nursing presence in the state of Pennsylvania.
“The ESI Team was successfully able to showcase how a new regional owner/operator could eliminate the agency staffing issues by utilizing their regional recruiting network” commented Henry Fuller, Senior Associate at ESI.
ESI represented the seller, a regional owner/operator who was exiting the long term care industry. “ESI was successfully able to navigate headwinds of regulatory deficiencies, declining financial performance, and union negotiations all while keeping the purchase price the same as the original letter of intent” commented Jason Stroiman, President and founder of ESI.