December 18, 2020
Sale of Eden Springs Nursing and Rehabilitation in Ohio
ESI represented the sale of Eden Springs Nursing & Rehabilitation, a 167 bed skilled nursing and assisted living community for $3,500,000 ($21,000 price per bed).
Built in 1963 and 1993, the facility consists of an East campus (31 SNF Beds & 20 AL Units) and a West campus (120 SNF Beds). At the time of the sale, the community was 44% occupied and was losing just under $500,000 a year in net operating income. Contributing to the below average performance was struggling census, as well as poor expense management. This sale represents the greater portion of the campus, with the sale of the Independent Living portion having closed in May of 2020.
ESI represented the selling entity, the court appointed receiver, for the community. Jason Stroiman, President and Founder of ESI, commented “Eden Springs presented a great opportunity for a new ownership group with operational expertise and synergies in the skilled nursing and seniors housing market to stabilize occupancy and improve upon the expense structure as this community is folded into their portfolio. Although the current operator was unable to make the finances at the facility work in their favor, the transition to a larger operator should help the residents and employees at the community to be better cared for in the future with a better capitalized owner.”
Evans Senior Investments continues to observe the difficulty of operating long term care assets in today’s marketplace with rising labor costs and the increasing need for compliance oversight related to PDPM and the expansion of Managed Care networks. The continued crisis related to the COVID-19 pandemic will likely intensify the struggles of independent owners as the crisis strains the day to day operations at facilities nationwide. Since March 31st 2020, Evans Senior Investments has closed over $260M in transaction volume, with the Post-COVID pricing at 99.4% of Pre-COVID pricing.
The buyer was a New York based owner/operator of skilled nursing and seniors housing communities who wanted to grow their presence in the state of Ohio.