A publicly traded REIT sold its cash-flowing, 30-unit assisted living/memory care community in San Angelo, Texas, hiring Amy Sitzman, Giancarlo Riso and Michael Segal of Blueprint Healthcare Real Estate Advisors to handle the sale. Built in 2012, the community consists of two adjacent standalone buildings, in addition to excess land for expansion with a lot size of 2.82 acres. It was the newest seniors housing community in town, and the community historically performed well with occupancy exceeding 85% in 2019, while generating cash flows of $1.5 million at a 34% margin in the same period. After experiencing an occupancy disruption in 2021 from weather-related damages, the community rebounded with occupancy approaching 87% at the time of marketing.
Blueprint positioned the deal as an opportunity to acquire a cash-flowing asset that had demonstrated a clear rebound in operating performance towards previously-achieved stabilized performance levels in 2019 and 2020. Plus, an incoming investor could expand the property and generate attractive in-place cash-on-cash returns.
Blueprint advised the seller to move forward with an East Coast-based owner/operator that was looking to expand its footprint in Texas. Additionally, the buyer demonstrated relationships in place with lenders that translated to a higher execution certainty for the seller. The transaction closed within 90 days of contracts being signed.
