February 8, 2019
ROCKVILLE, MD–Private equity investor Tryko Partners has expanded into the southern Maryland skilled nursing community with the acquisition of a 160-bed facility in Rockville. Marquis Health Services, the firm’s healthcare affiliate, has assumed operations of Collingswood Rehabilitation & Healthcare Center with plans to launch a $4.5 million renovation and programming expansion.
Collingswood provides post-hospital care, short-term rehab and long-term residential care, and maintains a five-star rating from the Centers for Medicare & Medicaid Services (CMS). Located at 299 Hurley Avenue, Collingswood is one of only two skilled nursing facilities in the area to provide onsite hemodialysis. It is situated on 4.8 acres in Montgomery County, approximately 18 miles northwest of Washington, D.C.
“We are well-established in Maryland, particularly the Baltimore area, and this acquisition is an ideal opportunity to enter the Montgomery County market,” said Tryko’s Uri Kahanow, director of acquisitions, who spearheaded the purchase with the firm’s Chris Welsh. “Collingswood is already considered one of the area’s leading facilities and is distinguished by its state-of-the-art hemodialysis center. Our planned upgrades will further modernize Collingswood and secure its position as the top regional choice for skilled nursing care.”
Marquis’ comprehensive renovation of Collingswood Rehabilitation & Healthcare Center will focus on creating a modern, hospitality-focused environment for patients and staff. Anticipated improvements include the addition of approximately 30 private rooms and expansions of the therapy gym and common spaces, such as the dining areas and day rooms. Collingswood was originally developed in 1973 and expanded in 2000. More recently, during the last four years the previous owner invested $1.2 million in improvements, including upgrades to a safety sprinkler system, HVAC units and flooring.
Marquis – which already maintains strong ties with the Health Facilities Association of Maryland – works at each of its facilities to forged partnerships with top healthcare systems to develop specialty programs that meet the needs of area residents. At Collingswood, this will include the creation of a Cardio Pulmonary Care Program focused on promoting independence and quality of life for heart and lung patients.
“Adding the Marquis touch – from programming expansions and service model improvements to physical updates – will take this already successful facility to the next level,” said Norman Rokeach, chief executive officer of Marquis Health Services. “This is a perfect fit for Marquis. We are a third-generation, family-owned skilled nursing home owner and operator, and Collingswood has been a family business for two generations. The facility’s administrator and many staff members have been there for over 15 years. That longevity is unique in this industry and a testament to the facility and past ownership.”
M&T Bank financed the Collingswood acquisition. “This transaction garnered heavy interest from our network of bank lenders,” noted Tryko Partners’ Chad Buchanan, chief investment officer. “Ultimately, the healthcare team at M&T Bank provided acquisition, renovation and working capital financing that will enable us to execute on our business plan at an attractive cost of capital. Of equal importance, they gave us certainty of execution in a very tight timeframe.”
Brick, NJ-based Marquis Health Services is a recognized leader in providing subacute rehabilitation and skilled nursing care. With Collingswood, the company has expanded its portfolio to include 12 skilled nursing properties in the Mid-Atlantic region – with additional locations in New Jersey and Pennsylvania. The organization’s growing portfolio also includes 10 facilities in New England. Today 75 percent of the Marquis Health Services portfolio has received four- and five-star ratings for outstanding care.
Tryko Partners also purchases multifamily properties and tax liens along the Eastern Seaboard and in the Midwest. The firm maintains a corporate office and has an established foothold in the Baltimore multifamily market as well. The company has an outstanding reputation as an operator, developer and property manager.