Blueprint Healthcare Real Estate Advisors announced the final tranche of a staggered portfolio sale of 22 total skilled nursing facilities across three states, and the team saved best for last with the sale of 18 facilities in Florida. Michael Segal, Ben Firestone and Lauren Nagle represented the public REIT seller in the Florida transaction, while Messrs. Segal and Firestone handled the earlier Georgia and Maryland deals.
In its third quarter earnings report, Omega Healthcare Investors disclosed the sale of 21 skilled nursing facilities formerly leased to Agemo Holdings, LLC, after Agemo continued to not pay contractual rent and interest due under its lease and loan agreements. The divestment included 18 skilled nursing facilities in Florida (including one facility expected to close in a few weeks), two facilities in Georgia and two in Maryland, which adds up to the 22 facilities sold by Blueprint on behalf of its public REIT client in the last couple of months.
The Florida facilities ranged from 60 to 180 licensed beds with geographic clusters in South Florida, along the Gulf Coast and across North Florida. During the marketing process, the portfolio maintained an average 3.5 CMS-star rating with 10 facilities rated four or five stars. The facilities also stand to benefit from Florida’s recent approval of a 7.8% Medicaid rate increase. We covered the Maryland and Georgia deals earlier in the month, as well.
According to Omega, the gross proceeds from the sales of the 21 properties totaled $359 million and involved a total of 2,522 operating beds and under 2,800 licensed beds, or around $140,000 per operating bed and around $130,000 per licensed bed. The sale of the 22nd property would bring those per-bed prices down slightly. In the company’s earnings call, Omega COO Dan Booth confirmed that they did hire an outside third-party to broker the Agemo assets and that the portfolio was well received, with a number of interested parties on a number of active bids.
Apparently there were over 20 offers on the 22 facilities, and Mr. Booth stated that Omega “met and potentially even exceeded price expectations in that transaction.” He later clarified that the “buyer group held to the original price that was set months and months ago.” Mr. Booth commented on the current state of the market, saying “I’m not sure if we were to go back out to the market today that we would see those same bed rates. I would expect them to go down.”
The skilled nursing market has continued to show great strength this year, but to have no price renegotiations for a portfolio of this size in this market climate is a feat. We wonder how many more transactions like it will close in the next several months.
