Blueprint Healthcare Real Estate Advisors made its mark at the NIC Fall Conference with three transaction announcements revealed while the industry descended on D.C. First, Blueprint closed the sale of a skilled nursing facility in Florida. Southern Oaks Care Center of Pensacola, Florida is a 210-bed facility that rebounded to pre-pandemic occupancy of 91% with over $4.0 million in annualized trailing EBITDAR, generating a 21.0% operating margin. Plus, Southern Oaks was slated to benefit from the upcoming Medicaid reimbursement rate increase, so there is still room for growth.
A cash-flowing SNF is a hot commodity right now, and a competitive bidding process saw an out-of-state partnership emerge as the buyer, paying $42 million, or $200,000 per bed, representing a 9.6% cap rate. The transaction closed in just four months from the start of marketing. Michael Segal, Ben Firestone, and Brooks Blackmon handled the deal.
The two other deals were located around Grand Rapids, Michigan. First was the sale of an assisted living/memory care community called Azpira Place of Breton in the town of Kentwood. Built in 2001, the private pay community comprises 67 assisted living and 12 memory care units. Pathway to Living purchased the property from Elmcroft Senior Living and a public REIT in February 2018 for $7.5 million, or $92,600 per unit, and a substantial interior renovation was completed in 2018 and 2019. At the time of the 2018 sale, it was operating just below breakeven.
Now representing management’s only location in the state, the seller made the decision to exit the market and engage Blueprint to facilitate the sale process. Multiple offers were received through competitive rounds of bidding, but ultimately Cardinal Senior Management, a regionally focused buyer based in Grand Rapids, Michigan, was chosen as the buyer. Michael Segal, Ben Firestone, and Lauren Nagle handled the transaction.
Nearby, Blueprint also sold a senior care campus in the city of Grand Rapids. Pilgrim Manor consists of 59 assisted living/memory care units and 55 licensed skilled nursing and long-term care beds. After being acquired by United Church Homes, Inc. in 2016 from another not-for-profit owner, the facility underwent extensive capital improvements, interior renovations, and a comprehensive building expansion.
The campus maintained several church affiliations in the local community and is a preferred provider of Spectrum Health System, the largest health system in the state and a force in the Grand Rapids area. However, Pilgrim Manor was ownership’s only Michigan location, and as performance challenges persisted throughout the pandemic the strategic decision was made to exit and focus on other core markets and growth opportunities. The marketing process resulted in five competitive offers from both for-profit and not-for-profit acquirers. Ultimately a buyer with an operating platform throughout the state of Michigan was chosen, for an undisclosed price. Michael Segal, Connor Doherty, Ryan Kelly and Alex Florea worked on the deal.
