Joshua Salzman, Michael Segal and Alex Florea of Blueprint Healthcare Real Estate Advisors represented a REIT in its divestment of a 170-unit seniors housing community in Dallas, Texas. Originally built in 1987, community received a thorough renovation in 2013 and additional capital improvements since 2016.
Following a previous operator transition, the REIT owner converted the remaining assisted living units to independent living, resulting in the community being fully focused on independent living. Occupancy had initially dropped after the conversion, but the community was repositioned as an affordable independent living option, and census steadily improved as a result.
However, cash flow remained relatively low, and the REIT engaged Blueprint to sell the value-add asset. A new owner was given the opportunity to improve the below-market rental rates as census continued to climb and potentially even add back assisted living units as resident care needs evolve. A Maryland-based private equity investor emerged as the buyer, closing the deal despite complications arising from the pandemic and a zoning variance.
