The former Mainstreet “transitional care” facilities that were developed with much fanfare continue to sell as vacant (but beautiful) assets. Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors just sold another one in Temple, Texas to a buyer with alternative plans for the property. Built in 2019 with 70 private units, the facility never operated, so that made an easier conversion project. The high-quality building featured plenty of common area and modern finishes.
A competitive market process saw Blueprint identify an experienced Texas-based real estate investor as the buyer who structured a lease with a national healthcare system based in Southern California to operate the facility as a specialty post-acute hospital. It sold for $10.507 million, or around $150,000 per unit. For that quality of physical plant, it seems the buyer is getting in at a good basis. The process took a couple of years, with a lot of moving parts, but the institutional seller stayed patient and flexible to get a good deal.
In July 2021, Ms. Sitzman and Mr. Riso sold another vacant Mainstreet facility in Amarillo on behalf of the seller. Also built in 2019 with 70 private units, it sold to the same Texas owner and its operating partner for $10 million, or $145,000 per unit.
