Blueprint Healthcare Real Estate Advisors’ Capital Markets Group, which is led by Alex Florea, has the first closing under its belt, as it was revealed the group secured acquisition financing for Chicago Pacific Founders’ purchase of an assisted living/memory care community in Tucson, Arizona. In addition, Blueprint’s Amy Sitzman, Jacob Gehl and Humair Sabir represented the developer and owner in the transaction.
Opened in May 2018 and about 90% occupied by the time of the sale, the community features 87 assisted living and 20 memory care units. Willis Development, in partnership with Dekel Capital which provided $8.4 million of equity, developed the community, and Milestone Retirement operated it. Chicago Pacific Founders’ operating subsidiary, Grace Management, will take over the strong operation moving forward and will oversee some capital improvements.
Mr. Florea was able to secure a five-year, mini-perm loan that beat out competing agency terms. It came with extension options, three years of interest only and a low, attractive rate. Plus, there was an earn-out component. The leverage could also be considered around “pre-COVID levels.” Truist provided the non-recourse debt and formed a new lending relationship with Chicago Pacific in the process.
Blueprint’s Steve Thomes and Dan Mahoney also assisted a national seniors housing owner/operator in finding a new tenant for its 120-bed skilled nursing facility in Boise, Idaho. The facility is located on a campus with 51 independent living units and 143 assisted living units, which the landlord operates itself. Blueprint sourced a tenant with a plan to turn around operations and that was flexible with the lease structure. Occupancy was around 70%, although with a strong quality mix prior to the management transition. The SNF had once operated quite strongly, so the potential was there.
This tenant initially operated this facility in January 2019 under a management agreement, but the agreement has now been converted to a lease, which was subject to HUD approval of the change in manager application. No wonder the landlord is happy with them, as they generated $12.3 million in revenue at a 22.1% EBITDAR margin at the close of 2020, which was a 20% and 10% improvement, respectively, over the previous manager.
