The trio of Ben Firestone, Michael Segal and Josh Salzman, Esq. from Blueprint Healthcare Real Estate Advisors sold three rural skilled nursing facilities in the southeast corner of Missouri on behalf of a public REIT owner. The facilities were the only three in the state to be managed by the Texas-based tenant. So management could perhaps be tightened by an in-state operator, as the portfolio’s census had fallen in recent years to below 50% in the six months ended March 2016, annualized. Cash flow was also negative at two of the facilities, and not trending well. The age of the buildings did not help matters, with one facility built in 1967, although the other two in the early-1990s. But a bright spot is that the quality mix has improved to 23% in the trailing six months ended March 2016, annualized. Pro forma revenues and EBITDAR are estimated to be approximately $10.48 million and $1.5 million, respectively, which is possible (provided the tough work is done) under the new ownership by a Missouri-based operator with a knack for turnarounds and a significant presence in the region. Plenty of upside.
No Worries in Missouri
