The community traded at a value-add based capitalization rate of approximately 3.5%, with the buyer expecting immediate execution of their profitability enhancing strategy.
Originally built in 2000, The Gardens is located 30 miles West of New Haven. At the time of the sale the community averaged 85.0% occupancy over the prior twelve months and was 100% private pay. The community was profitable but under performing due to the high operating expense structure, posting only an 11.9% EBITDAR margin in the trailing twelve month period.
ESI represented the seller, an independent owner/operator, in the transaction. Jason Stroiman, President and Founder of ESI, commented “The Gardens presented a strategic opportunity for a regional operator to apply additional synergies to improve the expense structure as this community is folded into their portfolio."
The buyer was a Maryland based operating company.