Blueprint Healthcare Real Estate Advisors handled a couple of sales on opposite ends of the East Coast. First, in Connecticut, Steve Thomes and Chris Hyldahl sold two skilled nursing facilities that were acquired by a private investment group based in New York City as part of a 10-SNF portfolio in late 2017. Combining for 197 licensed beds, one facility is located in the Hartford MSA, and the other is in Fairfield County near the New York border.
Older facilities, they were occupied in the mid-70s when the marketing process started in 2019, and it’s fair to say the pandemic and ensuing lockdowns took a further toll on census. Revenues also at the time of marketing were approximately $16 million, and any loss of residents would have impacted that as well. The facilities held four- and five-star ratings, respectively, but operating margins had been declining year over year.
Ownership had deemed them to be non-core, so Blueprint found a new owner in a Connecticut-based buyer with an existing operating footprint in the state, navigating the state licensure process and union collective bargaining agreement in place at both facilities to get the deal done. The purchase price, although not disclosed, was negotiated pre-COVID and did not change during the process.
Then, in Key West, Florida, Michael Segal and Trent Gherardini sold a 120-bed skilled nursing facility, the only one on the island. That market share did not keep the facility out of bankruptcy proceedings, however, as the facility, plus five others owned by Tampa-based, not-for-profit Senior Care Group, filed for chapter 11 protection in July 2017. The facility is situated adjacent to Lower Keys Medical Center, the ground lessor to the SNF, and it was also encumbered by an existing HUD mortgage.
Blueprint ran the auction sale, accepting an offer from a qualified buyer able to purchase the facility free and clear. The deal closed on October 15.
