Fresh off their top spot in our 2017 broker rankings (in terms of number of deals, properties and units/beds transacted), Blueprint Healthcare Real Estate Advisors seems to be eyeing that top spot for 2018 too, announcing that it represented a public REIT in its recent disposition of 20 Genesis Healthcare-operated skilled nursing facilities. The REIT ended up being Sabra Health Care REIT, and the deal itself doesn’t come as a surprise, as Sabra announced earlier in 2017 that, in an attempt to diversify its operator base (and lessen its share of Genesis properties), it was marketing for sale 35 properties under a memorandum of understanding with Genesis.
These 20 facilities (part of the original 35) total 1,866 licensed beds and are located in Kentucky (12), Ohio (7) and Indiana (1). The sale lessens Sabra’s annual rent from Genesis by $9.3 million and is on top of the sale of four other facilities under the memorandum of understanding that closed in the second half of 2017.
A private equity investor emerged as the buyer and will triple-net lease the facilities to Genesis at an initial cash yield of 9.0% and a lease coverage ratio of 1.4x based on trailing EBITDAR. At the purchase price of $103.3 million, or about $55,000 per bed, that results in a cap rate of about 12.6%. Well done to Christopher Hyldahl and Ben Firestone who led the transaction for Blueprint, and for the full 2017 broker rankings, be sure to check out the February issue of The SeniorCare Investor, hitting desks sometime next week.