A national developer/investor engaged Blueprint to create an exit strategy to maximize value for more than a dozen geographically disparate, older-vintage communities. These communities were purchased in a sizable portfolio transaction pre-pandemic under a value-add thesis with the intent to invest in renovations and repositioning. However, cumulative headwinds from the pandemic and rising interest rates drove a portfolio re-prioritization, rationalization and ultimate de-levering effort.
Built in 1999 and 2000, the portfolio consisted of two Utah seniors housing communities: a 113-unit AL/MC community in Salt Lake City and a 75-unit AL/MC community in Saint George. Performance varied between the communities, and neither was stabilized. Additionally, the SLC community still offered the opportunity of repositioning the inactive top floor, previously used for skilled nursing.
Multiple bids were received from established industry players, and the seller ultimately selected The Pennant Group as the buyer. The acquisition, which included the real estate and operations, was effective March 1, 2024. Pinnacle Senior Living LLC, Pennant’s senior living subsidiary, will take over operations.
