Gerry Adest Recognized in Senior Care Investor
Gerry Adest, CPA, Partner, was recently included in the Senior Care Investor article regarding the nursing home sale by Bon Secours New York Health System of its Schervier Nursing Home Center for his role in representing them on this transaction. The article outlines the deal and categorizes it as, ‘one of the largest ever in New York.’
The full article is restated below:
When sales of skilled nursing facilities in New York occur, they can often come with a big price. That big price can be in total dollars invested as well as the price per bed. In a recent sale, it was both. Bon Secours New York Health System sold its Schervier Nursing Care Center in the Riverdale section of the Bronx for $87 million, or $239,000 per bed. The buyer was TL Management, LLC.
The 364-bed skilled nursing facility was built in the mid-1970s on nine acres and has approximately 250,000 square feet. Occupancy has been strong, averaging between 90% and 95%, and revenues in 2015 were $54.3 million. The 2016 Medicare cost report has not been filed yet. EBITDA in 2015 may have been close to $2.0 million, and while we have yet to determine what “normalized” EBITDA would be, we have to assume it would be between $10 and $12 million. That is high, but large New York City-area SNFs can sometimes be cash cows when properly managed. Gerry Adest of Loeb & Troper represented the seller in the transaction, one of the largest ever in New York.
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