Blueprint Healthcare Real Estate Advisors was involved in yet another acquisition by O&M Investments, LLC this month. The team of Ben Firestone, Connor Doherty and Michael Segal represented a publicly traded REIT and a regional operator in their strategic divestment (to O&M) of a 64-bed skilled nursing facility in Blue Ash, Ohio, an affluent suburb of Cincinnati. Built in 1969 but renovated in 2006, this single-story facility features 10 private units and 27 semiprivates. Los Angeles-based O&M, which is led by principals Nick Martinez and Todd Okum, will have their work cut out for them, as the facility reported negative cash flow on $4.4 million of revenues at the time of the sale. Occupancy was close to the national average, at 83%, which could also be improved. It should help that O&M brought in an in-state, high-acuity operator to manage the property. The purchase price was $4 million, or $62,500 per bed.
Early in April, Christopher Hyldahl and Gideon Orion of Blueprint sold a 130-bed skilled nursing facility in Harriman, Tennessee (Knoxville MSA) to O&M for $6.1 million, or $46,923 per bed. The facility is also considered a value-add opportunity for the buyer, O&M Investments, 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.
