Blueprint Healthcare Real Estate Advisors sold two skilled nursing facilities in the Rust Belt that had experienced some operational struggles. First, things were looking up for a 160-bed facility in Milwaukee, Wisconsin. After landing on the SFF list in 2014, which brought on a new third-party operator, the facility began to turn its operations (and cash flow) around by mid-2017.
Built in 1965, it was renovated in 2011 to offer more private rooms and was situated only blocks from one of the largest full-service hospitals in the Milwaukee MSA. Its publicly-traded REIT owner determined the facility to be non-core and sold it to a Chicago-based investor for an undisclosed price. The buyer’s wholly-owned operating company in Wisconsin took over management. Ben Firestone and Michael Segal handled the transaction.
The pair were then joined by Connor Doherty to sell a well-maintained, but underperforming, skilled nursing facility in Richfield, Ohio (Akron and Cleveland MSAs). Owned by a publicly-traded REIT and managed by a national operator, the 96-bed facility went through some recent regulatory issues, and census declined as a result. It was being sold as part of a larger portfolio repositioning by the seller.
So, the Blueprint team positioned it as a value-add opportunity, eventually sourcing an owner/operator looking to grow its presence in the region as the buyer. The new owner subleased the facility in advance of the real estate sale in order to quickly transition the operations, and moving forward hopes to take advantage of an increased Medicaid reimbursement rate.
