Some senior care investors have been doing some last-minute Christmas shopping, with Blueprint Healthcare Real Estate Advisors announcing several sales. First, the team of Jacob Gehl, Humair Sabir and Scott Frazier represented an owner/operator looking to retire with the sale of their 35-unit (70-bed) assisted living community in Mission Valley, California (San Diego MSA). Blueprint was tasked with confidentially marketing the community and closing its sale within the calendar year.
The property’s attractive location resulted in several competitive offers, but Bayshire Senior Living, a growing regional owner/operator with three other communities in the San Diego market, was ultimately selected, paying $7.25 million, or $207,000 per unit. There is some potential to add value, and we know how high values can go in desirable submarkets like Mission Valley, so it’s all up to Bayshire now.
Then, Blueprint’s Gideon Orion and Michael Segal handled the sale of a 114-bed skilled nursing facility in Texarkana, Texas. A publicly traded REIT was looking to divest the facility, which had recently experienced a decline in census and quality mix. Originally built in 1972, The facility was designed with three wings to offer rehabilitation, skilled nursing, cognitive care and long-term care, but one of the wings had to be closed for efficiency and expense management purposes. However, throughout all that, it maintained a positive reputation and strong referral relationships with three nearby regional health systems.
With the right investment to reopen the closed wing and the right operator that can turnaround the census and quality mix, that offers a prime turnaround opportunity. In the end, an established provider in the region bought the facility, closing the deal just 60 days after offer acceptance.
Finally, Mr. Segal and Steve Thomes joined forces to sell a 60-bed skilled nursing facility in Norfolk, Virginia. Originally built in 1984, the facility was about 89% occupied. A skilled nursing investor actively growing its Virginia portfolio approached the Blueprint duo to present an unsolicited offer to acquire the facility, which would fill out their presence in the area, from another known Blueprint client. That connection led to an unprecedented negotiation period of just 48 hours, followed by the parties finalizing the definitive contracts just three weeks later, and closing the due diligence and license transfer 60 days from inception.
