M&A continues at a steady clip, and Blueprint Healthcare Real Estate Advisors obliged with a couple of recent closings. First was the sale of a skilled nursing facility located just outside of Cleveland, Ohio. Totaling 120 beds, the facility was built in the 1960s and thoroughly renovated in the 1990s. Historically, it did bring in stable cash flow, and it showed well for a facility last fully renovated more than 20 years ago. However, it did not fit into the regional Ohio-based owner’s operating model.
That’s where Blueprint came in, approaching a New York-based private equity group that has an existing presence in Ohio. They saw an opportunity to add value through higher acuity care, and to boost its presence and operational efficiencies in the area, and paid an undisclosed sum for the facility. Connor Doherty and Ryan Kelly worked on the deal.
Next, Steve Thomes, Ben Firestone and Michael Segal represented Salmon Health and Retirement in the sale of its 180-bed senior care facility in Northbridge, Massachusetts, just south of Worcester. It was not a straightforward deal, but what deal is these days?
Originally built in 1970, the community expanded in 1995 and 2005 to now featuring 154 skilled nursing beds and 26 assisted living units on nearly 13 acres. It was also renovated during the last expansion, and the physical plant is in good shape. Prior to the pandemic, Salmon Health made the decision to strategically divest the facility in order to focus on its portfolio of predominately seniors housing communities. The marketing process yielded several competitive offers, with the seller selecting a regional operator as the acquirer. However, in the middle of contract negotiations, the Commonwealth of Massachusetts dropped the bed count to 140 SNF beds in order to remove a number of three- and four-bed wards, which clearly would have an impact on the asset’s valuation.
Both sides were unable to reach common ground, resulting in Blueprint re-engaging several of the backup bidders. That is why you have a Plan-B (and C and D, etc.), and a growing Massachusetts-based buyer stepped in to close the transaction. No purchase price was disclosed.
