A private equity firm previously focused on development made the switch to M&A in acquiring a newer-vintage but value-add memory care community in an affluent suburb of Chicago, Illinois. The move makes sense, given the opportunities to acquire quality physical plants for below the cost to build, and usually far below that cost.
Built in 2015, Gurnee Place Memory Care features 42 units in the town of Gurnee. The community was 90% occupied and had positive cash flow, but a receiver engaged Blueprint to maximize proceeds for the bank and stakeholders involved.
They received five offers from private equity groups, real estate investment firms and regional owner/operators before a Minnesota-based PE firm emerged as the buyer. They brought in a new operator with more of a presence in the local market than the previous operator, which should help with some minor expense efficiencies.
