REIT Finds New Tenant for Ohio Skilled Nursing Portfolio
It’s not the easiest time for a transition in operators, but Michael Segal, Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors facilitated the change across a portfolio of four skilled nursing facilities in Ohio. Owned by a public REIT, three of the facilities are located in the Columbus and Cincinnati MSAs, while the fourth is in the northwest part of the state near Indiana. Totaling 613 licensed beds, 502 of which are dually certified and 111 are residential care, they historically operated near stabilized levels, but revenue and census declined as a result of the pandemic. That put pressure of the lease coverage, and the prior operator expressed a... Read More »
Blueprint Sells Two New York ALFs
A couple of value-add assisted living communities sold in upstate New York. Blueprint Healthcare Real Estate Advisors was hired by the REIT seller to lead the sale process, which was part of a larger strategic disposition. Located in the greater Rochester market, the two communities were underperforming, which was only made worse by the pandemic. A very competitive regional market for assisted living services also made for a tough operating environment. So, a regional buyer with ties in the Rochester market ended up as the acquirer and the license transfer was completed. They paid an undisclosed cash amount. Working on the transaction was Blueprint’s Ben Firestone, Steve... Read More »
Capital Square 1031 Manufacturing Success
In the 2020s, seniors housing investors will be forced to invest in communities designed and priced for the middle- to low-income seniors. One company, Capital Square 1031, is doing just that, acquiring an age-restricted manufactured housing community on the Peace River in Port Charlotte, Florida. This is the second such community in Capital Square’s portfolio, but won’t be the last. The community has 147 units on 26 acres, with rents averaging $448 per month, or about a third less than the area’s average. About 38 units were vacant at the time of the sale, offering a value-add opportunity for Capital Square. Walker & Dunlop originated a $3.6 million loan from Fannie Mae, with a... Read More »
A Focused Turnaround Sale in Oregon
In a turnaround project gone right, Focus Healthcare Partners sold its independent living community in King City, Oregon (Portland MSA) after three years of ownership. Built in 1988 and previously renovated in 2008, the community featured 114 units, with 13 studios, 67 one-bedroom units, 24 two-bedroom units and 10 two-bedroom cottages. A partnership sold it to Focus in May 2017 for $14.8 million, or nearly $130,000 per unit. At the time, besides being 10 years on from its last renovation, the “C” quality community was under 80% occupied. In came Focus Healthcare, which invested $2.3 million in renovations, upgrading all the common areas and units and bringing the community to “B”... Read More »
August Acquisition Volume Light, But Consistent
Can we call it a comeback when the seniors housing and care M&A market surpassed 20 deals in August? We recorded 21 publicly announced transactions in the month, which is the highest total since April when 22 deals were disclosed. Since April, there have been 20 deals announced in May, 18 in June and 20 again in July. Consistent, yes, but we just still aren’t used to seeing numbers like these after the heady times of 2018 and 2019 when buyers regularly made 40 transactions or more in a month. Through the end of August, the seniors housing and care M&A market reached 200 deals announced in 2020, so far. Roughly half of that total came in the first quarter, which was... Read More »Schedule a demo
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