Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors handled the sale of an 80-bed skilled nursing facility in upstate New York, representing the private ownership group seller in the process.
Originally developed in the mid-1970s in Rensselaer, New York (across the Hudson River from Albany), the facility recently received significant capital investments that included interior renovations, operational equipment upgrades and technological enhancements. Ownership also made improvements to the majority of private rooms, which helped keep the quality mix very strong at around 50%. Operations were also solid (and improving before COVID-19), with occupancy consistently above 90%.
Nevertheless, the seller decided to divest before the pandemic, engaging Blueprint to run the sale. An owner/operator emerged as the buyer, structuring the real estate sale subject to a leadership change at the management company operating the facility. Despite the operational challenges caused by COVID-19, both the buyer and seller remained in the deal until its close at the end of December. Fortunately, occupancy was rebounding in the months leading up to the deal, so the buyer could work with that.
