A publicly traded REIT decided to exit a number of secondary and tertiary markets in Illinois and Missouri, hiring Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors to get the job done. The portfolio featured 1,581 total licensed beds in 14 skilled nursing facilities, with 12 located in central and southern Illinois and two in Missouri. Several of the facilities were recently renovated to offer high-acuity, short-term rehabilitation care, and now currently feature a high number of private rooms. Each facility in the portfolio is also strategically located near primary referral sources. However, the REIT owner wanted to lessen its exposure in these markets and end its relationship with the two unaffiliated Illinois-based operators managing the portfolio under lease agreements. The incoming owner has a presence in the region and decided to retain the larger in-place lessee, Bridgemark Healthcare, to operate all 14 facilities. Messrs. Firestone and Segal sold the portfolio for $59.75 million, or about $38,000 per bed.
The deal comes on the heels of another closing by Firestone and Segal, who were joined by Christopher Hyldahl and Gideon Orion to sell a 181-bed skilled nursing facility in Columbia, Tennessee (Nashville MSA). Again, it was a publicly-traded REIT which was divesting the facility, which was built in 1974 and featured a 2,500-square foot rehab gym with a dedicated entrance and a license for outpatient care. Newer facilities had entered the market, resulting in operational pressures in recent years. The buyer, New York-based Luxor Healthcare Group, is an experienced co-investor in the skilled nursing space but is making its first solo acquisition with the Columbia purchase. No price was disclosed, but Luxor plans on repositioning the asset and stabilizing operations through various marketing initiatives and outreach programs.
