A high-quality, well-performing seniors housing community in northern Indiana found a new owner with the help of Ben Firestone, Connor Doherty and Ryan Kelly of Blueprint. The 100-unit assisted living/memory care community appears to be Valparaiso Senior Village, which was built in 2018 across 88,000 square feet. It was originally operated by Arrow Senior Living and owned by the developer, The Argent Group LLC, but struggled with lease-up, only reaching 28% before the pandemic stopped new move-ins. So, ownership closed it in September 2020, and the building was sold vacant in May 2021 for $9.15 million, or $93,400 per unit to an unidentified private equity firm. Evans Senior Investments handled the 2021 sale.
The buyer at the time planned to make significant renovations and brought in Priority Life Care to operate. StoryPoint Group later took on operations, and the community is currently generating positive cash flow and had a positive occupancy trajectory. It thereby offered immediate yield along with further upside through continued census growth.
After a competitive bidding process that saw five offers from REITs, owner/operators and not-for-profits, the seller elected to pursue a broader transaction, including the asset marketed by Blueprint as well as several additional assets within the portfolio.
Blueprint also closed a third transaction on behalf of a national REIT-affiliated owner/operator in North Carolina, selling a Greensboro seniors housing asset that had faced prolonged operational difficulties and less-than-ideal census. It did not help that the local market was oversaturated. Blueprint marketed the underperforming community to both seniors housing and behavioral health buyers, as the facility layout and dynamics were conducive to inpatient substance abuse treatment and mental health in the local market.
Multiple offers came in from both buyer types, but the three distinct behavioral offers exceeded the seniors housing ones (at least one by over 20%), and the seller ultimately selected an owner/operator joint venture that Blueprint has closed with previously. Blueprint also advised both buyer and seller on municipal zoning challenges that arose while under contract. Andrew Sfreddo, Steve Thomes, Kory Buzin and Gunnar Raney handled the transaction.
