Fresh off them taking the top spot in our broker rankings for number of deals closed in 2018 (with 85), Blueprint Healthcare Real Estate Advisors announced a slew of transactions at the start of February, including two large portfolio sales.
First, Ben Firestone and Michael Segal handled the sale of two skilled nursing facilities in northeast Wisconsin as part of a larger portfolio restructuring by the publicly traded REIT seller. Totaling 250 beds, the facilities were the only ones managed by the national operator in the state of Wisconsin, which prompted the sale. One location in downtown Green Bay is the largest licensed SNF in its market with 136 beds, while the other 114-bed facility is located about an hour away near Oshkosh. Combined, they struggled to generate positive cash flow, which also likely motivated the REIT’s exit. An owner/operator looking to expand its presence in northeast Wisconsin emerged as the buyer. No purchase price was disclosed.
Then came the portfolio sales. The first was located in Texas and featured eight skilled nursing facilities being sold by a New York-based national owner. Occupancy and the quality payor mix could both be improved, currently at 65% and 10.5%, respectively, but there is potential for significant cash flow with $55.5 million of in-place revenues. The sale of seven of the facilities was announced in December, with Mozart Healthcare paying $32 million for the 1,004-bed portfolio. Two operators will take over management of the facilities, with Summit LTC leasing the five facilities around San Antonio and Dallas and Paradigm operating the two in the Houston area. Trinity Healthcare purchased the eighth property outside of San Antonio. Chris Hyldahl and Gideon Orion handled the transaction.
Then, in Georgia, the team of Ben Firestone, Chris Hyldahl and Michael Segal represented Invesque in selling a portfolio of seven skilled nursing facilities in northwest Georgia. Following the 2017 acquisition, which included an ownership interest in a regional pharmacy company, Invesque’s operating partner Traditions Senior Management significantly improved operations across the portfolio, which now generates nearly $50 million in total revenues with substantial cash flow. A statewide Medicaid rate increase also improved the prospects of the portfolio and attracted a buying group that was interested in both acquiring the pharmacy interest and entering the state. HHC Finance worked with the buyer to arrange acquisition debt for the $70 million purchase price, which comes out to $96,400 per bed, a record for a SNF sale in the state of the Georgia, according to our database.
Finally, on the seniors housing side, Jacob Gehl, Humair Sabir, and Scott Frazier sold a 109-bed assisted living community in Riverside, California on behalf of its Florida-based private equity owner. Cash flow was limited at the well-maintained community, despite a relatively stable census. But seeing a value-add opportunity, Ventura Park Management bought it for $6.1 million, or $56,000 per bed.
