Blueprint started the fourth quarter well after selling a portfolio of skilled nursing facilities in Florida, California and Virginia, on behalf of a public REIT. The existing tenant elected not to renew its master lease, prompting the portfolio divesture. The first closing was completed in Florida for two high-quality SNFs.
The two facilities are situated along the Gulf Coast and were built in 2008 and 1988. At the time of marketing, the near-stabilized facilities were both well occupied with attractive quality payor mixes, further supported by the state-implemented Medicaid reimbursement rate increases effective October 2024.
Marketing efforts yielded 12 highly competitive offers from acquirers based across the country that were eager to expand or establish their footprint in Florida. Following multiple rounds of bidding, a New Jersey-based owner/operator with a considerable presence in central and coastal Florida was selected as the winning bidder. Michael Segal, Jacob Gehl, Ryan Chase, Daniel Waldhorn and Dillon Rudy handled the deal, which closed ahead of schedule.
The next closing was completed in Virginia, where Segal, Gehl, Chase, Waldhorn and Rudy sold four skilled nursing facilities on behalf of the REIT. The 570-bed portfolio spans from southwest Virginia to the Tidewater, ranging in size from 60 to 300 beds, which also include some seniors housing units at the largest location. Three locations were originally constructed in the 1970s with renovations and upgrades over the years, and one facility was developed in 2005. The facilities were well-positioned and historically operated with positive margins, however, the ever-changing Virginia Medicaid reimbursement landscape put some recent downward pressure on results, creating performance fluctuation.
There were 14 offers from highly qualified potential buyers, many of which were seeking platform expansion opportunities in Virginia. After several competitive bidding rounds drove pricing up for the seller, a New York-based owner/operator with a considerable presence in the Commonwealth was selected as the ultimate buyer.
