A Massachusetts-based owner/operator that’s looking to grow its holdings in New England just added a new managed community to its portfolio. EF Senior Care is now operating an assisted living community in Massachusetts that is owned by a sole operator reaching retirement. Built in 1989, the community features 47 units. Also, in March, the company began managing two skilled nursing facilities near Worcester, Massachusetts totaling 215 beds. For the eight months EF has been the manager, the average monthly NOI has already increased almost $50,000 net of its management fee, and EF will continue to improve the facilities.
EF Senior Care has made two other acquisitions since its founding in 2018. First, in November 2021, it acquired The Terraces Orleans from a family operator. The facility is 55 years old, features 52 skilled nursing and independent living beds on Cape Cod, Massachusetts, and was underperforming at the time of the sale. So far, EF has invested around $3.8 million to renovate the property and has increased NOI by 450% on a revenue increase of 24% compared to pre-COVID results.
The facility was originally slated for divestment in 2019, but that previous sales process was unsuccessful. Ultimately, EF came in and purchased the community, securing financing through a local bank and raising equity from private investors. Blueprint handled the transaction. Today, the building is full and is 100% private pay (one of only a handful of private pay SNFs in MA) with little agency staffing.
Next, in December 2023, EF Senior Care acquired Sunny Acres Skilled Nursing and Rehab in Chelmsford, Massachusetts. At the end of 2022, the company executed an agreement to purchase the facility by the end of 2023, contingent on obtaining financing. At the same time, it signed an interim management agreement effective January 1, 2023. The seller was a long-time family operator.
The facility, which is 75 years old and comprises 95 skilled nursing and memory care beds, was facing post-COVID performance challenges. To get lenders comfortable with financing the deal by the end of 2023, EF needed to quickly demonstrate improved, sustainable financial performance, which it did. Occupancy has increased from 89% in 2023 to 92% in 2024. Excluding stimulus funds, 2024 revenues have increased by $2 million and NOI has also increased by $2 million, compared to 2022. The transaction was financed through a bridge loan from Greystone Monticello (who also provided an A/R revolver line) and seller financing.
EF Senior Care is actively seeking opportunities to expand its footprint, so keep an eye out for more announcements from the company.
