A publicly traded REIT sold its 170-bed skilled nursing facility in Beaufort, South Carolina, for an undisclosed price. Brooks Blackmon, Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors handled the transaction.
Built in several phases beginning in 1969, the facility features mostly semi-private rooms. Prior to the pandemic, it had generated positive cash flows with occupancies exceeding 90%, but operations were significantly impacted by census and staffing headwinds as a result of the pandemic, thereby generating millions of dollars in operating losses.
Blueprint was hired to run a confidential marketing process on a separate SNF that the REIT owned in South Carolina, however, after Blueprint procured eight competitive written offers during that process, the REIT decided to explore the sale of the Beaufort facility, as well. Blueprint approached those groups that had submitted competitive written offers and positioned the offering as an opportunity to acquire a facility at significantly below replacement cost. A New York-based owner/operator eager to grow its existing regional footprint was chosen as the buyer and closed the deal despite multiple survey issues at the facility as well as a difficult capital markets environment.
