In a pre-COVID, value-add portfolio transaction, a national developer/investor acquired over 12 geographically disparate, older-vintage communities. The combined impact of COVID and an unforeseen rise in interest rates prompted a strategic portfolio re-prioritization, rationalization and de-levering effort, leading to the divestment of a seniors housing community in Fort Mitchell, Kentucky, that was a geographic outlier and deemed non-core.
Built in the late 1990s, the community comprises 95 units of assisted living and memory care. Although it was performing, it was not fully stable from an occupancy or margin perspective, necessitating capital enhancements to achieve its full potential.
To facilitate the sale, the seller enlisted Blueprint. A well-known regional buyer with a history of successful transactions with Blueprint was approached. Less than a week later, the regional buyer presented an offer. The buyer intends to invest significant capital in the asset for unit and common area upgrades. Kyle Hallion and Alex Florea handled the transaction.
