CHICAGO — Evans Senior Investments (ESI), a Chicago-based broker, has assisted a Louisiana-based owner-operator in its exit from the long-term care industry.
The portfolio consisted of three separate transactions for all five of the seller’s communities. The combined purchase price for all three transactions was $99 million, or $137,000 per functional bed/unit. Four of the five communities were built between 1996 and 2011, and the vast majority of beds were private resident rooms.
The first tranche of the portfolio consisted of one skilled nursing facility located in Rayne, Louisiana. The community was licensed for 130 skilled nursing beds and had an additional 54 banked skilled nursing beds that could be used for an expansion in the future. At the time of marketing the average census was 71 percent with revenue of $8.5 million and net operating income of $1.1 million. A regional owner-operator looking to grow its skilled nursing presence in the state. The community sold for $14 million, or $108,000 per functional bed.
The second tranche of the portfolio consisted of a standalone skilled nursing facility located in Baton Rouge, Louisiana. The community represented the oldest property in the seller’s portfolio, being built in 1973, and consisted mostly of a Medicaid and Veterans Administration resident base. At the time of marketing, the average census for the community was 68 percent with revenue of $6.5 million and net operating income of $1.1 million. A regional owner-operator purchased the community for $12 million, or $91,000 per bed.
The final transaction of the portfolio included three skilled nursing communities with a small assisted living component. The portfolio consisted of 428 skilled nursing beds, 32 assisted living units and 56 banked skilled nursing beds for a future expansion opportunity. Additionally, one of the communities had just opened a ventilator unit and dialysis program, which will add additional reimbursement revenue for the new operator.
At the time of marketing the portfolio had a census of 83 percent with revenue of $36.5 million and net operating income of $6.8 million. A regional owner-operator looking to enter the Lafayette, Louisiana, market purchased the assets for $73 million, or $159,000 per functional bed/unit. “This tranche of the portfolio matches the highest price-per-bed skilled nursing transaction ever sold in the state of Louisiana,” says Henry Fuller, senior associate with ESI.
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