We covered Virginia-based hospital system Sentara Healthcare’s exit from the skilled nursing business in September and recently learned of Blueprint Healthcare Real Estate Advisors’ involvement in the deal. Sentara’s exit was brought about because of its planned merger with North Carolina-based Cone Health; however, the combined business will still maintain two PACE facilities in southeastern Virginia.
The skilled nursing portfolio consists of seven facilities located throughout southern Virginia, with five surrounding the Norfolk/Virginia Beach market. They were mostly built in the late-1980s and early 1990s, with one opening more recently in 2017. They range in size from 84 beds to 216 beds, and there was an 86-unit assisted living community included in the deal. Altogether, the portfolio features 876 total beds.
The not-for-profit hospital chain started looking for buyers in the first quarter of 2020, before COVID-19 set in, and had previously sold three SNFs in 2019, also working with Blueprint to close that deal. The process only confirmed their decision to find an owner more focused on the skilled nursing market, with Sentara focusing on the acute care business. Chosen among a group of regional owner/operators and public REITs that all submitted offers, the new owner will be Omega Healthcare Investors, which will in turn add the facilities to its master lease with Saber Healthcare Group, a private skilled nursing operator with over 125 facilities across the country. Omega paid all cash, which we imagine helps closing any deal today.