The seller, a private real estate investor, exclusively engaged Blueprint for the team’s vast experience handling dispositions of Southern California skilled nursing facilities.
At the time of sale, the South Bay area asset generated $4.25 million in top line revenue on a trailing 12-month basis with strong per patient day reimbursement rates. Despite lacking a perceived sense of scale from the market, negative trailing EBITDAR, and over $350,000 in outstanding QA fees, Blueprint aggressively positioned the asset as a value-add opportunity given the seller’s investment in the physical plant and strong historical overall CMS star rating. Capital improvements totaled $1.7 million in the past three years, of which $800,000 was used to prepare the facility for approval of 27 subacute beds.
Blueprint called on its expertise to form a quick and competitive marketplace while preventing disruptions to current operations throughout the transaction. The marketing process resulted in multiple offers from investors and owner-operators alike and, ultimately, the high bidder was a reputable real estate investor with a notable California footprint and ability to close quickly. Blueprint worked with all parties to facilitate a desirable transaction timeline while maximizing value for the seller.
The purchase price of $4 million was equal to $80,000 per bed.
Christopher Hyldahl, Gideon Orion, and Kendra Gonzalez handled the transaction.