Built in 1965 and renovated in 2011 to offer additional private rooms, Lake Terrace Health and Rehabilitation Center is situated just a few blocks from one of the largest full-service hospitals in the Milwaukee MSA. The facility had experienced regulatory challenges including being designated to the CMS Special Focus Facility program in 2014, which resulted in third-party management taking over operations in September 2015. It wasn’t until mid-2017 when the licensed operator placed a renewed focus on census improvement and cost controls that operations and cash flow began to show improvement.
Blueprint effectively positioned the asset on a positive trajectory to maximize value during its marketing campaign. Blueprint also stressed the facility’s proximity to the area’s top referral sources and health networks to articulate upside, ultimately procuring a strong offer from a Chicago-based investor with a wholly-owned operating company in Wisconsin. Blueprint worked actively with all parties to close the transaction while seamlessly transitioning operations. The new operator intends to continue the turnaround effort and establish Lake Terrace as a premier provider in Milwaukee’s East Side neighborhood.
The transaction was led by Ben Firestone and Michael Segal.