Connor Doherty, Ryan Kelly, Chris Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors closed a skilled nursing deal in Ohio on May 1. It took a motivated seller, experienced buyer and a willing lender to get the deal done, not always an easy combination these days.
An older vintage with some recent updates, the 150-bed skilled nursing facility is located near Youngstown, Ohio. It was owned by a REIT and managed by a large national operator, but the time had come to sell. Turnover in key leadership positions had caused occupancy to decline, which we are sure added to the motivation to exit.
Blueprint positioned the property as a value-add opportunity, if a new owner reduced the bed count, created more private rooms and operated it more efficiently. Emerging from three other competitive bids, the buyer was a small but growing (and well capitalized) regional owner/operator with several other facilities and pursuing an expansion in the Midwest. The deal closed, we heard, with no change to the purchase price despite the new and difficult environment that virtually all skilled nursing providers are dealing with these days.