Caring for higher acuity residents in assisted living comes with added risks, staffing needs and costs. That goes without saying. But, by accepting those residents, owners and operators also charge higher rents and expect a higher level of cash flow to compensate them. That is at least what the new owner of two assisted living communities in the Dallas-Fort Worth area is banking on.
Amy Sitzman and Joshua Salzman of Blueprint Healthcare Real Estate Advisors represented the seller, a national seniors housing owner/operator, in the transaction. Totaling 114 units, their communities were purpose-built in the late-1990s in established and affluent suburban neighborhoods. Now, Elmington Senior Living (the buyer) will reposition the properties and upgrade them to Type-B assisted living in order to serve a higher acuity resident. It won’t be as easy as flipping a switch, but after some changes, those higher rates should pay off.
Another Blueprint team arranged a lease for two assisted living communities, this time in California. Jacob Gehl, Humair Sabir and Scott Frazier were engaged by the publicly traded REIT landlord of the communities (which totaled 232 units) to either sell the assets or find a replacement tenant to operate them, since the existing lease with the tenant was expiring. However, after fielding several proposals, the REIT ultimately released them to the same tenant, with Blueprint handling the documentation, due diligence and licensing.
