Evans Senior Investments (ESI) brokered the sale of a three-property portfolio in Ohio. The transaction was executed on behalf of the Mariner Management Group, Inc., an independent owner and operator seeking to exit the industry.
The portfolio, which was built in stages between 1990 and 2013, consists of three communities with a total of 317 licensed skilled nursing beds and 209 senior housing units. Located in western Ohio, this portfolio offered a unique opportunity for potential investors looking to acquire a group of geographically concentrated communities.
At the onset of ESI’s marketing process, the average occupancy rate was stagnant at 65%, leading to financial challenges across the board. Despite these challenges, ESI effectively highlighted the properties’ growth potential. Ohio’s health care landscape offers operators opportunities for improvement and expansion, driven by the state’s aging population and growing demand for quality senior care services.
The recent Medicaid rate increases for assisted living waivers, with reimbursement at $130 per day for base care, further support this potential. ESI showcased how the improved rates offer a new operator the chance to grow the bottom line. Additionally, by leveraging existing hospital relationships, the new operator can boost occupancy and restore the communities to stable census levels.
ESI closed the deal despite a multi-million dollar liability associated with independent living entrance fees. ESI engaged a select group of qualified buyers, generating multiple competitive offers. Ultimately, an experienced owner-operator in the state purchased the portfolio.
Distressed Pennsylvania SNF sold
Evans Senior Investments (ESI) brokered the sale of Beacon Ridge, a skilled nursing community in Pennsylvania, on behalf of a non-profit organization.
Located 50 miles from Pittsburgh, Beacon Ridge opened its doors in the 1970s and has since completed two major renovation projects. The community is licensed for 118 skilled nursing beds and offers a unit mix, including private units, semi-private units, and three-bed wards. At the time of marketing, Beacon Ridge was 63% occupied and operating with a negative net operating income. Prior to the pandemic, the community maintained stabilized occupancy rates in the 80s for over 12 consecutive months.
After the owner defaulted on its existing bond debt, ESI was hired by the seller to market the communities in a competitive process and maximize the property’s value as part of the Section 363 bankruptcy process.
ESI navigated the complexities of bankruptcy proceedings with the assistance of Duane Morris LLP, highlighting Beacon Ridge’s future potential—including upward census trends and favorable demographics—to new ownership groups.
ESI targeted a select group of skilled nursing buyers, and procured nine competitive offers before the buyer was finalized.
Trilogy Health expands across the midwest with 49 skilled nursing units
Trilogy Health Services has announced an investment to develop and expand senior living and assisted living services in Indiana, Kentucky, Michigan, and Ohio. This investment aims to help address the growing demand for senior living accommodations and services. The plan includes expanding facilities across several states and developing a new campus.
“Trilogy continues to innovate and find new ways to meet our local seniors where they are,” said Leigh Ann Barney, President and CEO of Trilogy Health Services, “Our goal is to deliver a comprehensive continuum of care in underserved markets while expanding options in our established communities. We look forward to launching these exciting developments, creating new career opportunities, and meeting the growing demand for high-quality senior living accommodations and care.”
Trilogy will kick off its patio home expansions this summer in Sylvania, Ohio, with 26 new independent-living patio homes for seniors at The Lakes of Sylvania. The expansion is projected to start in July 2024.
Moreover, Trilogy is set to break ground on a new campus in Portage, Michigan, in August 2024. This new location will offer assisted living, memory care, and skilled services, including short-term rehabilitation. The campus will feature 49 skilled nursing units, 42 assisted living units, and 12 memory care assisted living units.
