Evans Senior Investments (ESI) last week announced it represented an owner-operator in the $51.5 million sale of a 558-bed nursing home portfolio.
Located in Southwest Colorado, the seven properties were built between 1957 and 2017; each bed is valued at $92,000. The buyer is an East Coast owner and operator looking to grow their presence out west, ESI added.
“The portfolio presented an exciting opportunity for a new ownership group to grow their presence in the state of Colorado and expand upon the synergies of a rural market,” Jeremy Stroiman, CEO of ESI, said in a statement.
Real estate brokerage firm ESI operates out of Denver and Chicago, with over $30 billion in assets and has sold more than $3.5 billion in long-term care facilities through its Buyer Preference Program.
The properties were 77% occupied prior to the pandemic, ESI said in a statement, and produced nearly $6.2 million in annual net operating income.
Currently, occupancy sits at 65% for the properties, but ESI still received several competitive offers after the portfolio was on the market for a couple weeks in December 2021.
“The competitive bidding arena and strong price per bed for a rural portfolio whose census and cash flow were well below stabilized levels showcases the willingness of buyers and lenders continuing to work together to get deals finished with the headwinds that they continue to face,” said Brendan DeSilvia, associate at ESI.
The pandemic, along with rising labor costs and the increasing need for compliance oversight, will continue to intensify the struggles of independent owners, according to ESI.
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