Two seniors housing deals were announced in the western United States by Blueprint Healthcare Real Estate Advisors, and neither buyer plans to keep operating the properties as seniors housing. Amy Sitzman, Giancarlo Riso and Ben Firestone kicked things off with the sale of an independent living community in the Southwest. Built in the late-1980s with a more recent renovation, the community features more than 130 units. The owner had invested significant equity into the physical plant, and operations were trending positively.
They decided to sell the community to a multifamily company that had purchased another property of the seller’s in mid-2021, also with the help of the Blueprint team. As in that deal, the buyer will convert the community to market-rate apartments. Both deals were on the market in early 2020, but the sales were delayed due to the pandemic.
Next, Blueprint’s Blake Bozett identified an alternative use for a vacant assisted living/memory care community in Boise, Idaho, selling the property to a not-for-profit organization with plans to convert it to transitional housing for the homeless. Originally built in the 1970s as a skilled nursing facility, the local sellers bought the property from The Ensign Group a few years ago and converted it to seniors housing. However, census was persistently low in the last year, and the owner decided to close the community in September 2021 while moving residents and staff to its other assisted living community in the area.
Mr. Bozett brought in Boise Rescue Mission to purchase the asset for $3.25 million, or $36,100 per unit (not bad for an older, vacant property). The not-for-profit has plans to complete some capital improvements and rename the community “Sonrise Transitional Housing.” Several LOIs were submitted to the seller in the last year, but apparently they have some peace of mind knowing the building will serve this new purpose.
