Blueprint was brought on to facilitate the sale of two Class-A assisted living/memory care communities in the Philadelphia, Pennsylvania, MSA. The seller was a national developer/investor divesting to de-lever and accelerate the wind-down of the maturing fund holding the communities.
One of the communities opened in 2016 and is relatively smaller compared to the other, which opened in 2020. The older community had never fully stabilized, however, it maintained a modest in-place cash flow and showed positive momentum. Meanwhile, the newer community had never recovered from its COVID-driven lease-up challenges but, even at lower occupancies, showed margin potential. They are located approximately 10 miles apart and collectively comprise over 200 units.
Blueprint targeted established owner/operators with strong capital relationships and investors able to buy with low/no conventional leverage, and received various asset-level and portfolio bids. Ultimately, the emerging buyer was a joint venture between Persimmon Ventures and Capital Senior Ventures. Alex Florea, Steve Thomes and Kory Buzin of Blueprint handled this transaction.
Earlier this year, Persimmon and joint venture partner Big Bay Ventures sold a portfolio of eight assisted living communities and 744 private pay units in Pennsylvania (7) and Michigan. Persimmon and Big Bay had begun acquiring the communities in 2016 and post-acquisitions had focused on capital improvements. Occupancy was in the upper 80s and low 90s. A Northeast-based owner with over 50 locations (mostly concentrated around the Philadelphia, New York and Boston markets, bought the portfolio for $136 million, or $183,000 per unit, assuming existing HUD debt in the process.
