Buyer: Tryko Partners
Seller: ManorCare Services at Mercy Fitzgerald Hospital
Sector: Nursing, Rehab, Healthcare
Tryko Partners Adds Philadelphia-Area Facility to Skilled Nursing Portfolio
Built in 1995, Providence Rehabilitation and Healthcare Center at Mercy Fitzgerald sits adjacent to Mercy Fitzgerald Hospital, which is part of the Mercy Health System. The two-story, 129-bed facility provides post-hospital care, short-term rehab and long-term residential care. It maintains a four-star rating from the Centers for Medicare & Medicaid Services (CMS) with a five-star rating for quality measures. Tryko/Marquis purchased the facility from a ManorCare Health Services/Mercy Fitzgerald Hospital joint venture. The hospital will retain ownership of the land.
“This acquisition marks our second skilled nursing facility in the Greater Philadelphia region,” said Tryko Partners’ Uri Kahanow, director of acquisitions. “As an owner and operator with strong relationships with top area healthcare providers, we are well-suited to partner with Mercy Fitzgerald and look forward to working closely with the hospital. This facility is one of the nicest physical plants in the competitive market, and we are excited about the opportunity to take it to a whole new level.”
Located at 600 South Wycombe Avenue in Yeadon, a suburb of Philadelphia in Delaware County, Providence Rehabilitation and Healthcare Center at Mercy Fitzgerald recently underwent a $1 million capital improvement program under the previous ownership. Updates at the approximately 52,000-square-foot facility included the addition of a 1,500-square-foot therapy space.
Tryko/Marquis’ planned renovation will further modernize the facility’s rehab therapy gym and accommodate expanded programming. In addition, extensive upgrades are planned for the lobby, common areas, and private and semi-private patient rooms. “One of Marquis’ areas of expertise is creating specialty programs that best support the regional needs for quality skilled nursing care,” noted Norman Rokeach, CEO for Marquis Health Services. “At Providence Rehabilitation and Healthcare Center, we are currently further developing the facility’s pulmonary-cardiovascular rehab program. In addition, we will continue building on the strong relationship with Mercy Fitzgerald Hospital and plan to develop other specialty programs for the benefit of this community.”
The acquisition was financed with CIBC, one of Tryko’s long-time banking partners. “CIBC quickly and easily understood the opportunity and the facility’s strategic fit within our existing operating and investment portfolio,” said Chad Buchanan, Tryko Partners’ chief investment officer. “As always, they closed the transaction with us seamlessly, which allowed us to focus our efforts on the facility’s patients, their families and our staff.”
Within the Philadelphia skilled nursing community, Tryko/Marquis also operates Kearsley Rehabilitation and Nursing Center, a skilled nursing facility in West Philadelphia that is part of a continuing care retirement community. Kearsley recently opened a new, million-dollar sub-acute care unit. Tryko Partners, which acquired Kearsley Rehabilitation and Nursing Center in 2011, over the past five years also has added a 2,200-square-foot therapy gym and completed extensive upgrades throughout Kearsley’s common areas. Tryko/Marquis recently developed a comprehensive cardiac program in partnership with Philadelphia-area hospitals as well.
Tryko Partners is a private equity investment group based in Brick, N.J. Through its affiliate Marquis Health Services, Tryko is involved with close to 3,000 skilled nursing beds throughout the Northeast and Mid-Atlantic regions. During the past seven years, Tryko Partners has enhanced its emphasis on healthcare investment opportunities. It also invests in multifamily properties and tax liens along the Eastern Seaboard and in the Midwest.