The portfolio included centers located in Kansas (9), Missouri (6), Iowa (2), and Nebraska (1). The regional cluster was comprised of 1,843 total licensed beds and generated approximately $110 million in total revenue on a trailing basis at the time of sale. Most of the centers were situated in suburban neighborhoods, while several of the centers were in secondary markets within driving distance from Kansas City.
The seller, a publicly-traded owner-operator, elected to divest of its assets in this region and concentrate on its core geographic density, its strong hospital partnerships, and its greatest growth potential. Blueprint was selected as the exclusive advisor largely due to its successful track record of maximizing value for non-core assets on behalf of institutional investors and large owner-operators within the seniors housing and long-term care industry.
Blueprint effectively marketed the complex portfolio, which included HUD mortgage indebtedness and two leased assets, to a handpicked group of prospects. The process ultimately yielded eleven qualified offers, from both investors and from owner-operators, which served to drive value. Through multiple competitive rounds of bidding, Blueprint and its client selected Illinois-based Cascade Capital Group as the purchaser. Cascade differentiated itself with its certainty of execution, by way of its unique access to private capital and its extensive network of operators it ultimately utilized to lease the portfolio to regional operators.
The purchase price was $82,000,000 or approximately $45,000 per bed.
Ben Firestone, Christopher Hyldahl, and Michael Segal structured the transaction.