An institutional real estate investment and development firm engaged Blueprint to conduct a risk/reward analysis of making capital improvements versus divesting its seniors housing community in Richmond, Virginia. Built in 1999, the 99-unit distressed assisted living and memory care community was struggling to rebound from pandemic-era lows, and the fund’s investment horizon was approaching.
The seller ultimately elected to divest the community, and in this process Blueprint highlighted the West End submarket’s demand fundamentals and the opportunity to add value through repositioning. Targeting buyer prospects with a presence and/or interest in Richmond, the marketing campaign yielded several competitive offers from a mix of buyer profiles, including not-for-profits, private equity-backed operators, and a smaller owner/operator.
After initially selecting a not-for-profit buyer, the deal stalled due to a number of operational setbacks during diligence, with the buyer choosing to pull out of the deal. Blueprint re-engaged with other bidders and the deal was put back under LOI at the same price, but with a new buyer.
The transaction closed at the agreed-upon price and terms following an accelerated process in which contract negotiations and licensure approvals were expedited. Alex Florea, Kory Buzin, Steve Thomes and Kevin Lukehart handled the transaction.
