Blueprint was engaged by Gables Management Company, an owner/operator/developer, in its divestment of two newer vintage, Class-A communities in the Akron and Columbus MSAs. Built in 2017 and 2021 respectively, the communities total 198 independent living, assisted living and memory care units. Demonstrating strong performance, the communities achieved over 98% occupancy, low-30% operating margins and market leading reputations for quality and care.
Blueprint procured six offers from REITs, private equity and owner/operators. The ultimate buyer was Cardinal Senior Living based in Grand Rapids, Michigan. Alex Florea, Connor Doherty and Ryan Kelly handled the transaction. Given the properties’ quality physical plants and strong levels of cash flow, we believe the assets traded for above $300,000 per unit and for a market cap rate around 7%, or close to the cap rate floor for seniors housing communities these days.
Florea, Doherty and Kelly also arranged the sale of another seniors housing community in Northwest Ohio. Built in 2016 as a hybrid seniors housing and skilled nursing facility, the community was repositioned as a high-quality, middle-market seniors housing community with 16 memory care units and 58 assisted living units, with 16 dedicated to “enhanced care” for higher acuity residents.
The community accepted both private pay and Ohio Medicaid Waiver residents at the time of marketing and was approaching stabilized occupancy. It was projected to experience favorable year-over-year rate growth given the lack of new or planned competing developments within the local market.
Blueprint targeted owners and investors with existing footprints within the Midwest and the surrounding geography, resulting in multiple competitive offers from regional owner/operators seeking expansion through acquisition. The ultimate buyer was not disclosed.
