Net-worth nets results

A high net-worth healthcare real estate investor saw quite the value-add opportunity in a portfolio of five assisted living communities located throughout Central Florida. The properties were perhaps fated to change hands, as they were acquired by the seller (a publicly traded REIT) as part of a large merger a few years ago, but were not seen as “core” communities. There is some work to be done too. Built from the mid-1980s to the early-1990s, the buildings need some capex. And despite a stable occupancy in the mid- to high-80s, a significant portion of the census was Medicaid payors. Under management of a national operator (which had been in place for a short time before the REIT took over ownership), expenses also ran high, and some of the communities were losing money. All of this awaits the new owner, which paid $16 million, or about $71,000 per unit. A growing regional operator will take over management of the communities and hopefully get things back on track. Ben Firestone and Trent Gherardini of Blueprint Healthcare Real Estate Advisors handled the transaction.