Sometimes in seniors housing, the better buyer comes from behavioral health. That was the case in Blueprint Healthcare Real Estate Advisors’ sale of an assisted living/memory care community near Dallas, Texas. Featuring 65 units, the community was originally developed in 1996 but received substantial renovations in 2020. It consisted of large units, amenity spaces and outdoor areas.
However, intense market competition and surrounding labor pressures negatively impacted the community. Although occupancy was decent, RevPOR was still low (albeit improving) and the community (while profitable) was not covering its debt payments. So, Blueprint implemented a tiered marketing campaign targeting both senior housing investors and operators to purchase the operations and real estate, as well as behavioral healthcare providers seeking an adaptive re-use opportunity to license as a behavioral healthcare operation.
Andrew Sfreddo, Shane Harmon and Gunnar Raney of Blueprint’s behavioral health team and Amy Sitzman and Giancarlo Riso of the firm’s Seniors Housing & Care team worked together to identify well-capitalized prospects from both sectors. Ultimately, an established behavioral healthcare provider offered the highest price and was selected as buyer, for an undisclosed amount. There were also no adjustments to the final purchase price.
Additionally, Blueprint helped introduce and secure a real estate capital partner for the behavioral healthcare operator. The two parties entered into a long-term, triple-net lease on the asset, and the capital partner will provide renovation capital for the operator.
