Dan Mahoney, Kristen Ahrens, Dillon Rudy and Pat Maloney of Blueprint facilitated the sale of two stand-alone, Class-A memory care communities in solid markets in Oregon and Washington. Built in 2015, Windsong at Eola Hills is a 56-unit value-add community in Salem, Oregon. The community was generating $800,000 in EBITDAR. Built in 2019, Windsong at Southridge is a stabilized, 56-unit private-pay community in Kennewick, Washington. It was generating more than $1.4 million in EBITDAR.
Strong buyer interest resulted in six offers, with the sellers (which are exiting the seniors space through this divestment) ultimately choosing a Pacific Northwest-based operator partnering with a West Coast equity group. The operator has additional buildings in its portfolio, but this is the first it has purchased with this capital partner, and this is the capital partner’s first acquisition as a fund. There was some fluctuating occupancy, which led to some tougher discussions, but ultimately the transaction crossed the finish line, and at an 8.6% cap rate with a purchase price of approximately $25.8 million, or $230,000 per unit.
Blueprint’s Capital Markets team secured multiple financing options, with the buyer opting for a 72% LTV ($18.6 million) non-recourse fixed-rate bridge loan and a planned HUD takeout through BWE. The HUD process will begin soon for one asset, with the second following within 24 months.
Rudy, with Kyle Hallion and Jacob Gehl, also handled the sale of a four-property seniors housing portfolio located throughout metro Atlanta and southern Georgia. A nationally recognized institutional private equity firm based in New York was the seller.
Built in the late 1990s and early 2000s, the communities are strong physical plants that have been well-maintained and have recently received capital investments. The portfolio offered a mix of in-place cash flow and value-add upside through the completion of property lease up at two of the communities, while the other two stabilized communities offered attractive financing options for an incoming buyer.
Blueprint emphasized the portfolio’s strong fundamentals and in-place cash flow, attracting interest from a mix of southeast operators and national investors. A large Georgia-based owner/operator looking to expand its seniors housing footprint emerged as the selected buyer. It intends to increase service offerings through the implementation of its various ancillary companies.
