Making a splash so far in 2016, Blueprint Healthcare Real Estate Advisors recently announced five end-of-year closings, including two leases.
First (and the largest) was the sale of a 206-unit independent/assisted living community in O’Fallon, Missouri to CNL Healthcare Properties for $54 million, or $262,100 per unit. Originally built 10 years ago with 116 IL units and 40 AL units, the seller, a joint venture between AEW and First Capitol Group, after purchasing the community in 2011 for $26 million, invested nearly $10 million to add a new 50-unit AL building and to convert 22 AL units to 24 memory care units. The MC units were fully leased by closing, but the community historically has seen occupancy in the high-90s or at full. And increasing the value by 50%, that is a nice return for the seller. Ben Firestone of Blueprint handled the transaction.
Next up, Chris Hyldahl of Blueprint represented the owner, a New York-based investment firm, in the sale of its struggling 265-bed skilled nursing facility in Fort Worth, Texas for $9.6 million, or $36,200 per bed. Built in 1974, the facility was formerly on the Special Facility Focus list, but recently graduated from it. As a result, occupancy was just 66% (but rising), there was a 27% quality mix and the facility was losing money on about $9.6 million of revenues. The Southern California-based buyer leased the facility to a Texas-based operator.
Finally, on the M&A side, Ben Firestone, Steve Thomes and Tim Cobb handled the sale of a 108-bed skilled nursing facility in Windsor, Connecticut. Owned by Ventas and operated by Kindred Healthcare, this facility had a union in place and was operating at about breakeven on $9.8 million of revenues, prompting the divestment of the non-core asset. It was built in 1966 and featured an 88% occupancy rate and 29% quality mix. Congressional Bank provided acquisition financing for the buyer, a regional operator, which paid $2.55 million, or $23,600 per bed.
Chris Hyldahl also arranged two leases. Jacob Gehl, with Connor Doherty, Michael Segal and Ryan Chase, triple-net leased a portfolio of eight skilled nursing/assisted living facilities in suburban Youngstown, Ohio (with 554 SNF beds and 250 AL units) to an operator on behalf of the owner, a local high net worth investor. Two of the buildings are set for substantial Medicaid rate increases. And then, Mr. Hyldahl brought in a young Los Angeles-based company with one other facility to lease a portfolio of six SNFs in the Los Angeles area with 521 total beds.