Continuing Blueprint Healthcare Real Estate Advisors’ busy deal activity in the last week, which included three skilled nursing closings on April 1st, the team of Amy Sitzman, Dan Mahoney and Blake Bozett sold a 36-unit assisted living community in Kennewick, Washington, in the eastern part of the state. Built in 1995 and featuring all private rooms, the private pay community recently struggled with occupancy because of key leadership turnover.
The seller did work to increase census to over 90% throughout the transaction process, which created some good faith between parties that almost surely allowed for a smooth closing in the middle of the COVID-19 crisis. Blueprint solicited five credible offers, ultimately selecting a sophisticated and well-capitalized buyer making their fourth acquisition in the state. A private lender provided the financing to get the deal done.
Staying in the Pacific Northwest, earlier in March Michael Segal, Ben Firestone and Dan Mahoney successfully sold a 70-unit assisted living community in Great Falls, Montana. Newer and larger than the other communities in the area, the community also boasted stable cash flow. It sold to a relatively new private equity fund and its Oregon-based operating partner for an undisclosed price.
Segal and Firestone were then joined by Alex Florea to sell an assisted living/memory care community located near Pittsburgh, Pennsylvania. Built in the 1990s in a relatively rural area, the community had historically operated at stable levels, peaking in 2018 in terms of performance. However, occupancy began to decline while substantial renovations were being completed by both for-profit and not-for-profit local competitors. A local buyer will take on the task of turning things around.
It was all hands on deck for the sale of a senior living community in Riverside, California. The team on that deal, consisting of Michael Segal, Alex Florea, Humair Sabir, Scott Frazier, Jacob Gehl and Ben Firestone, represented the sellers, Capitol Seniors Housing and Welbrook Senior Living, which bought the community in 2013 for $16.25 million, or around $75,000 per unit. Built in 1984 as an independent living community, it received a massive $8 million renovation/conversion in 2014 to add assisted living and memory care services, dropping the unit count from 212 to 207 in the process. It was nearly stabilized, with performance improving during the marketing process as a result of higher rental rates upon new move-ins. That positive trend pushed the purchase price up by about 10%. The final price was not revealed, but we imagine that given the improvements, it surpassed $200,000 per unit.
Finally, we covered one other Blueprint March closing last week in the Dallas area. Congratulations to the Blueprint teams that got these deals done, and are still working on transactions yet to close.