Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors just sold a 70- unit empty building (70 beds) in the Texas Panhandle for $10 million, or nearly $143,000 per unit. That is an extraordinary price given that it was empty, was never licensed and never opened.
Built by Mainstreet in 2019 with 49,959 square feet and fully furnished at the time of the sale (probably needed to dust off the furniture), the facility never opened and was eventually foreclosed on by the bank lender. Mainstreet had built many of these transitional care facilities over the years, several of which never opened as competition for high-acuity, post-acute patients soared, as did the competition. They were a great idea, usually licensed as a skilled nursing facility but only taking private pay and Medicare patients for short-term rehab stays.
The buyer was a local investment group in Texas that will lease the property to KPC Health, which is based in Santa Ana, California. KPC Health is a private company that operates seven hospitals/medical centers as well as one skilled nursing facility. It appears they will plan to reconfigure the building to a medical center, the cost of which is unknown. They will also have to obtain a license for the new operations. If this sale intrigues you, stay tuned as the team will be bringing to market another similar property.
