Working on behalf of a REIT landlord, Blueprint Healthcare Real Estate Advisors found a new tenant for a 140-bed skilled nursing facility in Liberty, Missouri (Kansas City MSA). Built in 1971 with all semi-private units, the facility was approximately 80% occupied. Cash flow was also near stable levels, but rent coverage was limited. Owned by Omega Healthcare Investors, it was the only facility in Missouri for the operator, Consulate Health Care. As a result, Consulate sought an exit in order to focus on other core markets, but previous efforts proved ineffective.
However, right after the onset of COVID-19, Michael Segal and Ben Firestone initiated the lease transition to REACH LTC, an operator of 16 skilled nursing facilities in Missouri. Blueprint also had experience working with REACH, having handled two other lease transitions representing 15 total facilities to further the operator’s strategic expansion in the state. The facility was added to an existing master lease between REACH and Omega, and the transaction closed on June 3.
