Evans Senior Investments (ESI) brokered the sale of Henry County Healthcare Center in Paris, Tennessee. The transaction was executed on behalf of Henry County.
Built in 2001, Henry County Healthcare Center offers 136 skilled nursing beds across 5 acres of land. At the time of marketing, the facility was only 43% occupied and experiencing negative cash flows. Since the COVID-19 pandemic, the community has consistently remained in the 40-50% occupancy level month over month. Although the pandemic played a part, the primary issue has been the community’s low staffing levels, which frequently led to rejecting admissions.
Henry County Healthcare Center struggled to achieve industry-standard profitability due to its status as the sole skilled nursing facility, limiting its economies of scale.
After receiving approval to sell from the county, ESI was hired to facilitate the transaction. ESI ran a targeted marketing strategy to attract potential buyers, highlighting the growth potential in the local senior population and the opportunity to improve operational efficiencies. This approach successfully matched the healthcare center with a buyer capable of leveraging these opportunities. Ultimately, Ahava Healthcare was selected as the buyer.
45-bed post-acute rehab community in Las Vegas sells for $8.5M
The sale of a 45-bed post-acute rehab community in Las Vegas, Nevada, was also arranged by Evans Senior Investments (ESI). The transaction was executed on behalf of a regional owner-operator for a purchase price of $8,500,000, or $188,888 per bed.
The community, exclusively licensed to accept Medicare only, has provided high-quality skilled nursing care since its inception in 2015. At the time of marketing, the facility was 73% occupied and had struggled to maintain healthy occupancy levels in previous months. Despite these challenges, the facility’s growth potential and the anticipated Medicare rate increase set to take effect this year presented a valuable opportunity for the right buyer.
The previous owner-operator made the strategic decision to divest this asset to better concentrate on their regional portfolio. This was their only asset outside of the state of Michigan, and managing a single facility in the state presented challenges due to a lack of economies of scale.
ESI ran a confidential marketing process, reaching out to a select group of prospective buyers. This targeted approach resulted in a competitive bidding environment and ultimately led to the selection of a national owner-operator with an existing presence in the state. The LOI was executed within 9 days and the transaction was completed within four months of ESI launching its marketing campaign.
Colorado-based 110-bed nursing facility skilled sold to East Coast real estate holding company
Evans Senior Investments (ESI) was additionally involved in the sale of Summit Rehabilitation & Care Community, a 110-bed skilled nursing community in Aurora, Colorado. The transaction was completed on behalf of an independent owner-operator.
Built in 1972 with a 2018 renovation, Summit Rehabilitation & Care Community offers a modernized approach to long-term care. Upon marketing, the facility maintained a 95% occupancy rate, generating over $11,900,000 in annual revenue, leading to substantial profitability.
Evans Senior Investments effectively highlighted the community’s strong financial performance and growth potential, making it an attractive opportunity for prospective buyers. The recent Medicaid rate increases in the state, with approved future increases in 2024 and 2025, and strong operational performance metrics made it an even more enticing investment opportunity.
The ESI team conducted a marketing process directed at a select pool of prospective buyers, ensuring a competitive bidding environment while maintaining confidentiality. Ultimately, a real estate holding company based on the East Coast was chosen as the buyer, recognizing the strategic fit of the transaction. As a part of the process, ESI connected the buyer with the tenant, facilitating a new partnership.
