A value-add senior care portfolio in Chicagoland traded with the help of Blueprint’s Ryan Kelly, Connor Doherty, Alex Florea, Lauren Nagle and Brooks Blackmon. The team worked on behalf of a national developer/investor, which had engaged Blueprint to create an exit strategy for more than a dozen geographically disparate, older-vintage communities that had been purchased in a sizable portfolio transaction before the pandemic.
The Chicagoland portfolio featured three senior care campuses with a mix of 290 assisted living/memory care units and around 40 Medicare-only skilled nursing units. The assets opened between 1994 and 2000 and were geographically clustered in affluent Chicago suburbs. Two distinct managers operated the portfolio, which struggled operationally post COVID. There were some recent capital improvements made to the assets, but they still offered a meaningful value-add opportunity. And ultimately, the seller chose to divest these communities to preserve liquidity and simplify its portfolio.
Both Chicago-based owner/operators with local expertise and regional seniors housing operators were approached. But the seller chose to move forward with a locally based owner/operator looking to expand their Midwest portfolio into Illinois. They will maintain the skilled nursing operations in the portfolio.
