A portfolio of three skilled nursing facilities and 444 total beds in the St. Louis, Missouri area found a new operator/tenant thanks to Ben Firestone, Michael Segal and Billy Lichtenstein of Blueprint Healthcare Real Estate Advisors. Featuring positive cash flow (benefitted by Missouri’s Medicaid rate increase) and desirable locations near Barnes-Jewish Hospital, these facilities are owned by an Illinois-based owner/operator that decided to shift its focus to other owned and recently acquired facilities in Arizona and Illinois.
A growing operator with an existing presence in the state was chosen as the new operator for its commitment to capital improvements. The transaction was structured with a market-term lease and an attractive purchase option. There is some room for operational improvement, so if the operator executes, that purchase option should look even rosier.