Blueprint Healthcare Real Estate Advisors certainly has kept busy this summer, announcing four transactions in the last week. Connor Doherty closed two SNF transactions for Blueprint, both located in Ohio. The larger deal consisted of two facilities and 252 total beds, selling for a combined $16.75 million, or $66,470 per bed. The regional owner/operator seller had decided to strategically divest these assets as part of their long-term strategy and handed over ownership to an Ohio-focused operator with experience in operational turnarounds. They will have to use that experience on these two facilities. Built in 1975, with regular updates, the Cincinnati facility was just 66% occupied and operated at a 0.2% margin on about $5.9 million of revenues. However, quality mix stood at 47% and has a history of strong cash flow, so the new owner has a clear path to stabilization.
The other facility, with 150 dually certified beds in Chillicothe (Columbus area), is a similar case. Built in 1981 as a two-story addition to a four-story hospital, the facility features 59 semiprivate units, eight three-bed wards and two four-bed wards. It was 80% occupied with a 35% quality mix and operated at a 1.7% operating margin on approximately $9.2 million of revenues. About 40% of the physical plant is currently unused, but the buyer should be able to take advantage of existing renovation plans to add 47 seniors housing units to the building.
Mr. Doherty, along with Ben Firestone and Michael Segal, also sold a 50-bed skilled nursing facility in Marysville, Ohio for $2.6 million, or $52,000 per bed, with a 6.8% cap rate. Built in 1968 with all semiprivate units, the facility received extensive renovations in 1998. Operating margin stood at 6.0% on approximately $3.03 million of revenues, and occupancy was just 77%, both of which could be improved. There was a 30% quality mix as well. The REIT seller, which had hired a regional operator to manage the facility, decided to divest the asset, selling to an Ohio-based owner/operator with plans to modernize the building.
Blueprint continued its activity in the seniors housing sector too. Ben Firestone and Michael Segal first represented a private equity group and its national operator partner in the sale of a 145-unit independent living community in Allen Park, Michigan (Detroit MSA) for $14.05 million, or $96,900 per unit. The private equity firm decided to exit the region with the sale of this mid-rise building, which was built in the 1980s and 90s. Then, Messrs. Firestone and Segal, along with Jacob Gehl, sold a 49-unit assisted living/memory care community in Kansas for an undisclosed price. It was owned by a REIT/private equity group joint venture, but a regional operator has taken over ownership.
