The transaction resulted in a $7,600,000 total sale price, amounting to $79,166 per bed.

Initially built in 1968, the seller owned and operated the community for nearly two decades establishing an excellent reputation of care evidenced by their 4-star CMS rating. However, being their only skilled nursing facility, they faced the challenges of today’s operating environment and lacked economies of scale. The seller engaged the Evans Senior Investments team when they decided it was time to exit the long-term care industry.

Upon marketing, the facility was 68% occupied, generating over $7,500,000 in annual revenue, leading to a negative net operating income of over -$500,000. Evans Senior Investments was able to showcase the possibility for a new ownership group to align the community's census with the averages of competitors in the area, as well as the potential to tap into the robust network of hospitals in Fort Collins.

“Evans Senior Investments was able to showcase Colorado’s recent Medicaid rate increase which was projected to add over $450,000 in revenue beginning in July 2023,” commented Hank Fuller, Senior Associate at Evans Senior Investments.

ESI ran a thorough marketing process presenting several competitive offers to the seller. ESI selected a West Coast-based operator with an existing presence in the state of Colorado. The ESI team worked through all stages of the deal, including the transition process.