Evans Senior Investments (ESI) recently brokered significant transactions in the skilled nursing facility for sale, showcasing their expertise in matching healthcare centers with suitable buyers. The sales involved Tennessee, Nevada, and Colorado facilities, each presenting unique challenges and opportunities.
Henry County Healthcare Center
Built in 2001, Henry County Healthcare Center offers 136 skilled nursing beds on 5 acres. Despite its capacity, the facility faced significant occupancy and financial challenges, with occupancy rates persistently around 40-50% post-COVID-19. Low staffing levels, leading to frequent admission rejections, were the primary issues affecting the facility's performance.
After Henry County approved the sale, ESI was engaged to facilitate the transaction. They employed a targeted marketing strategy to attract potential buyers, emphasizing the local senior population's growth potential and operational efficiency opportunities. Ahava Healthcare was ultimately selected as the buyer, recognizing the facility's potential for operational turnaround.
Post-Acute Rehab Community
ESI arranged the sale of a 45-bed post-acute rehab community in Las Vegas, Nevada. Established in 2015, the facility, licensed exclusively for Medicare nursing facility, was 73% occupied at the time of marketing. Despite occupancy challenges, the impending Medicare rate increase presented a valuable growth opportunity.
The regional owner-operator divested this out-of-state asset to focus on their Michigan-based portfolio. ESI conducted a confidential marketing process targeting a select group of buyers, resulting in a competitive bidding environment. A national owner-operator with an existing presence in Nevada was chosen, finalizing the deal swiftly within four months of launching the campaign. The transaction was valued at $8.5 million, or $188,888 per bed.
Summit Rehabilitation & Care Community
In Aurora, Colorado, ESI brokered the sale of Summit Rehabilitation & Care Community, a 110-bed facility originally built in 1972 and renovated in 2018. The community maintained a 95% occupancy rate and generated over $11.9 million in annual revenue. The facility's strong financial performance and recent Medicaid rate increases made it an attractive investment.
ESI's marketing process targeted a select pool of prospective buyers, emphasizing the facility's robust financial health and future growth prospects. An East Coast real estate holding company acquired Summit Rehabilitation, recognizing its strategic value. ESI facilitated a new partnership between the buyer and the tenant, ensuring a smooth transition and continued operational success.
Critical Factors in Successful Transactions
ESI's success in these transactions highlights its ability to craft tailored marketing strategies that emphasize each facility's unique strengths and growth potential. Targeting specific buyer pools and maintaining confidentiality ensured competitive bidding environments that maximized value for sellers.
In each case, ESI identified and addressed the facilities' operational challenges. Whether it was low staffing levels in Tennessee, occupancy issues in Nevada, or optimizing financial performance in Colorado, ESI's strategic approach helped attract buyers capable of leveraging these opportunities.
ESI's understanding of regulatory landscapes, including Medicaid and Medicare rate changes, allowed them to position these facilities effectively in the market. Highlighting impending rate increases and other regulatory benefits played a crucial role in attracting buyers' interest.
Evans Senior Investments continues to demonstrate its expertise in the skilled nursing facility sector by facilitating key transactions across the United States. Their strategic marketing, operational insight, and regulatory knowledge ensure successful seller and buyer outcomes. The sales of Henry County Healthcare Center, the Las Vegas post-acute rehab community, and Summit Rehabilitation & Care Community exemplify ESI's ability to navigate complex transactions and achieve favorable results.
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