Giancarlo Riso and Amy Sitzman of Blueprint advised a client on a sale and HUD 232 process of five skilled nursing facilities located in central and west Texas. The facilities totaled 424 beds and featured positive cash flow. They had attractive, fixed-rate HUD debt of 2.8% and long remaining terms with maturity dates starting in 2035 through 2044, presenting an incoming investor with significant cash-on-cash returns, especially if they invested in a targeted capex program to raise the facilities’ competitive profiles. Further upside potential existed by improving the CMS star rating at each facility, and establishing additional referral relationships with nearby acute care hospitals.
Blueprint procured multiple competitive offers ultimately advising the seller to move forward with a growing skilled nursing operator that was looking to expand its footprint within Texas and grow its relationship with one of their existing capital partners. Blueprint also leaned on its experience with the HUD 232 TPA process to shepherd the various stakeholders towards closing.
