Blueprint Healthcare Real Estate Advisors has been on a roll recently, to say the least. Perhaps this sales spurt was kick started by some new energy entering the firm in the form of Pamela Pyms and Hayden Behnke of Pyms Capital Resources, because since that announcement, Blueprint has closed seven transactions accounting for 30 facilities. We detailed the first four in this month’s issue of The SeniorCare Investor, which will hit your desks next week. Which included Blueprint’s largest transaction of the bunch, involving 18 skilled nursing facilities and some 1,843 total licensed beds. Located in Kansas (9), Missouri (6), Iowa (2) and Nebraska (1), these midwestern SNFs were part of the divestiture program of Genesis Healthcare, which was seeking to divest from the region. Revenues reached $110 million for the portfolio, but we imagine that operations could be improved, given the relatively low price of $82 million, or $44,493 per bed. Cascade Capital Group, a private healthcare real estate investment and management firm that was launched in 2016 by the owners of Legacy Healthcare, emerged as the buyer. This transaction comes at a time of fast and impressive growth for Cascade. Ben Firestone, Christopher Hyldahl and Michael Segal handled the transaction for Blueprint.
Messrs. Firestone and Hyldahl, along with Trent Gherardini, also represented a publicly traded REIT and a national operator in the strategic divestment of a 120-bed skilled nursing facility in Port St. Joe, Florida (about 20 miles east of Panama City on the Florida panhandle). Paying $9.35 million, or $77,875 per bed, for the property was a Florida-based regional owner/operator, which hopes to use its regional network to improve operations. At the time of the sale, and based on trailing 12-month financials, the facility operated at just a 3% margin on approximately $9 million of revenues. Census and quality mix could increase too, currently standing at 80% and 25%, respectively.
Finally (for now), Mr. Hyldahl and Gideon Orion arranged the sale of a 130-bed skilled nursing facility in Harriman, Tennessee (Knoxville MSA) for $6.1 million, or $46,923 per bed. The facility is considered a value-add opportunity for the buyer, Los Angeles-based O&M Investments, LLC (run by principals Nick Martinez and Todd Okum), which will lease it to a regional operator with an existing footprint in Tennessee. They will hope to improve the operating margin, which stood at around 6.7% on approximately $6.6 million of revenues. Helping their cause should be the lack of competition in the area, as there are just two other facilities within 20 miles. That is, of course, if they provide quality care.
