Connecticut – Evans Senior Investments (ESI) has successfully arranged the sale of an 8-property skilled nursing portfolio across the Hartford Metropolitan Area of Connecticut. The transaction, executed on behalf of a REIT from the West Coast, amounted to $60,000,000, or $54,249 per bed for the real estate only.
Made up of eight communities built between 1966 and 1990, this portfolio represents a significant share of the Connecticut skilled nursing market, with a total of 1,106 skilled nursing beds. The portfolio’s average 4-star CMS rating across all eight communities serves as a testament to the high quality of care and services provided to residents, solidifying its status as a premier investment opportunity.
Upon marketing, the portfolio’s average census was 90% and the portfolio was anticipating a large Medicaid rate increase to take effect as of July 2024. The sale of the portfolio was subject to a triple net lease with the existing operator, with an additional 8.5 years remaining and two 5-year renewal options. ESI highlighted the appealing terms of the leases and favorable returns anticipated by the prospective buyer.
The ESI team conducted a confidential marketing process, procuring over 10 offers in under a month. Their process created a competitive bidding environment, which ultimately added substantial value to the closing price. The existing operator was chosen as the buyer. The transaction closed within four months of Evans Senior Investments’ marketing campaign.
Jeremy Stroiman, CEO at Evans Senior Investments, shared his thoughts, “By selecting the existing operator as the buyer, we have prioritized continuity of care for residents while also maximizing returns for our clients”.
About Evans Senior Investments
Evans Senior Investments (ESI) is a real estate brokerage firm with offices in Chicago, IL and Denver, CO specializing in the long-term care asset class. ESI provides market valuations and sell-side advisory to Seniors Housing and Skilled Nursing owners across the country. Founded in 2009 by twin brothers Jason and Jeremy Stroiman, ESI aims to provide a more efficient, transparent, and faster selling process through a unique team-based approach to brokerage. ESI’s sellers are represented by the entire firm, with each member an expert in the varying aspects of the transaction process.
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