Blueprint Healthcare Real Estate Advisors announced that it was involved in the Sabra Health Care REIT sale of 28 skilled nursing facilities in Texas and Louisiana to a joint venture of BlueMountain Capital Management, BM Eagle Holdings and Capital Funding Group for $282.5 million. Engaged by the joint venture buyer for their expertise on the Texas and Louisiana markets, Ben Firestone, Chris Hyldahl and Gideon Orion of Blueprint helped find local operating partners and tenants for the portfolio, which was previously operated by the now-bankrupt Senior Care Centers.
Despite the bad news surrounding SCC’s financial troubles, these facilities were still operating decently well, particularly the Louisiana facilities. That attracted CareTrust REIT, which simultaneously with this sale acquired 12 of the facilities in this portfolio, including eight in Louisiana and four in Texas, for $211 million, or $121,700 per bed. We haven’t yet heard of BlueMountain’s plans for the remaining 16 facilities.
Sabra had originally planned to sell its entire Senior Care Centers portfolio featuring 36 skilled nursing facilities and two assisted living communities for $385 million. But, the REIT decided to hold onto the remaining 10 facilities, until at least they are stabilized.
Moving forward, seven of those facilities will be leased to a current operator in the Sabra portfolio under a 12-year triple-net master lease effective next month, generating initial annual cash rent of $5.7 million. Sabra also received provisions to periodically reset the base rent as the properties stabilize. The remaining three facilities (two of which are currently non-operational) may be sold in the coming months and will generate no continuing rental revenues for the Company. Once all of these transactions close, it will be the end of Sabra’s relationship with SCC.