Blueprint confidentially marketed the asset as a value-add opportunity given that in-place cash flow was negative at the time of sale, due in large part to the facility’s recent graduation from CMS’ Special Focus Facility (“SFF”) watch list. Having generated in excess of $9,800,000 in total revenue on a trailing basis, the facility’s operational performance including census was continuously improving throughout the marketing process. Blueprint utilized a targeted approach presenting the value-add offering to a limited group of potential investors including owners/operators and qualified real estate investors, successfully extracting maximum value from a partnership between a Los Angeles-based real estate investor and a New York-based regional operator. The purchase price was $9,600,000, or $36,226 per licensed bed ($40,500 per operational bed). The seller was a reputable, national owner/operator of skilled nursing and long-term care facilities based in New York.
Christopher Hyldahl was the lead advisor and Mike Segal assisted in executing the transaction.