A struggling skilled nursing facility in Dayton, Ohio that has gone through survey issues and financial insolvency in recent years found a new owner with the help of Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors. The 108-bed facility, which was built in 1975 and has been relatively well maintained, was previously owned by a not-for-profit. Operations had been relatively consistent in the past several years, and even during COVID, but there are certainly many improvements to be made to both census and cash flow. The HUD loan on the property was eventually turned back to the agency, and the fair market value of the asset was determined to be less than the HUD loan obligations, so a short sale was sought.
Ultimately, the not-for-profit board and HUD approved the property’s sale to the highest bidder, a private equity owner/operator with a presence in the area. There was a tight timeline to sell the property, so Blueprint worked with all parties involved to get the sale closed within six months, including just 25 days following HUD approval. It helps that the buyer paid all cash, too, and was open to flexible terms. The purchase price was not disclosed, but the property apparently traded for fair market value.
Moving forward, the buyer plans some immediate cost control measures and hopes to stabilize the asset soon by increasing the CMI score, right sizing staffing, creating some new, niche care services and enhancing the physical plant.
