Shout out to Blueprint Healthcare Real Estate Advisors, which closed four deals this week. The deals were likely all but closed in the last month, but buyers and lenders have every reason to hit the pause button. So, to get a deal across the finish line is a feat.
We’ll start with the skilled nursing deals. The team of Christopher Hyldahl, Gideon Orion, Michael Segal and Ben Firestone first sold a 150-bed skilled nursing facility in Kerrville, a central Texas town. It was built in 2006 and enrolled in the Texas Quality Incentive Payment Program (QIPP). Occupancy was in the low-50% range, but cash flow (before the QIPP revenue) was near-stable and trending upwards.
After receiving six competing offers, the seller chose a private investor that contracted with a Texas-based provider as its tenant. Blueprint worked with the parties to facilitate the operational transition, a tough time for that we imagine.
That same Blueprint team then closed the sale of two skilled nursing facilities and 338 total beds in Montana. They represented a national operator that was motivated to completely exit the state to focus on its core markets. In addition to finding a buyer, Blueprint also helped with the HUD assumptions and operational transitions at both properties.
Then, Messrs. Segal and Firestone were joined by Trent Gherardini to sell a skilled nursing portfolio in the Southeast. The deal comes just a month after that same trio sold another portfolio of senior living communities in southwest Florida. The more recent deal features three SNFs in central Florida and one in Kentucky, with more than 400 total beds. They held two- and three-star ratings from CMS, with one classified as a Special Focus Facility. Even though occupancy was over 80%, the portfolio was losing money on more than $28.5 million of consolidated, annualized revenue. In an off-market deal, the REIT seller received an above-market offer and closed the deal on schedule.
Lastly, earlier in March, the team of Segal, Firestone, Hyldahl and Orion closed the sale of a 167-bed skilled nursing facility in an affluent suburb of St. Louis, Missouri for an undisclosed price. Despite receiving a $1.2 million renovation in 2015, the facility experienced steadily declining census and cash flow in the following years. It has had a long history of REIT ownership, the most recent of which deciding to sell to support the operator’s exit from the state. An East Coast-based owner/operator with a growing presence in the St. Louis area bought the facility, with Housing & Healthcare Finance sourcing the acquisition debt.
Stay tuned next week for Blueprint’s recent seniors housing closings.
