An entrance-fee CCRC in Odessa, Texas, with a major turnaround opportunity at its on-campus skilled nursing facility, just sold to a regional owner with the help of Amy Sitzman, Jacob Gehl, Giancarlo Riso and Humair Sabir of Blueprint Healthcare Real Estate Advisors. Originally built in 1987 with additions made in 1992 and 1997, the Type-C community features 55 independent living units, 23 high-acuity assisted living units and a 90-bed SNF, although just 71 beds were in operation. The independent living portion was almost always fully occupied (or close to it, even during the pandemic), but the SNF struggled with census in the last year, starting in the high-80s and eventually falling below the 70% mark. They were, of course, not alone in the occupancy decline, but the turnaround may require an operator more focused on the skilled nursing market.
According to our deal database, private equity firm RSF Partners had acquired the property in a joint venture with the operator, Evergreen Senior Living Properties, in 2015 as part of a four-CCRC portfolio deal from seller Sears Methodist Retirement System. The purchase price for the portfolio totaled $79 million, or $91,400 per bed/unit.
The current purchase price was not disclosed, nor the property’s financials, but we imagine there is room for improvement in the operating margin. Blueprint found the buyer, a regional owner with a number of properties across Texas, which will bring in an operating partner to lease the property. This will be the operator’s second building in its portfolio, with one other skilled nursing property it operates for the same owner. Both parties are looking to expand their presence in the state. A local bank provided the acquisition financing for the deal.
