SEATTLE — Evans Senior Investments (ESI) has arranged the sale of Washington Care Services, a 165-bed skilled nursing community in Seattle, for $10.5 million, or $64,000 per bed.
Built in 1974, the community was placed into receivership in June 2019 after the previous owner, a local nonprofit organization, defaulted on its existing HUD loan.
At the time of the sale, the property was 77 percent occupied and losing over $500,000 a year in net operating income. The new owner plans to correct course by replacing contracted staffers with full-time workers, while implementing expense management and approved Medicaid rate increases.
“These Medicaid rate increases will dramatically help improve the cash flow of the facility in the very near future and serve as a bridge through these troubled times,” says Henry Fuller, senior associate at ESI.
ESI represented the seller, the court-appointed receiver for the community. The buyer was an East Coast capital group that formed a joint venture with a Los Angeles-based operator. The community represented one of two facilities the venture closed on in the state of Washington simultaneously.
“Washington Care Services presented a great opportunity for a new ownership group with operational expertise and synergies in the skilled nursing market to stabilize occupancy and improve upon the expense structure as this community is folded into their portfolio,” says Jeremy Stroiman, CEO of ESI. “Although the nonprofit operator was unable to make the finances at the facility work in their favor, the transition to a larger operator should help the residents and employees at the community to be better cared for in the future with a better capitalized owner.”