DONE DEAL:
Right Down the Pike
Blueprint is pleased to announce the successful sale of Signature HealthCARE of Pikeville, a 106-bed skilled nursing and long-term care facility located in Pikeville, Kentucky. Blueprint executed the sale process on behalf of a publicly-traded REIT and a Kentucky-based healthcare and rehabilitation provider, both of which sought to strategically divest of the asset.

Located in Eastern Kentucky’s Pike County, Signature HealthCARE of Pikeville is situated less than one mile from the recently expanded 250-bed Pikeville Medical Center. The facility was built in 1970, was well maintained, and preserved a positive reputation within the local community. Although its average census was consistently above 90% and it generated over $9 million in total annual revenues, the facility’s operational cash flow struggled due to rapidly escalating liability insurance costs, a growing challenge for providers in the state.

Through a highly-targeted marketing campaign, Blueprint showcased the facility’s strong operational fundamentals as well as immediate expense optimization opportunities through restructuring insurance coverages. The process resulted in multiple competitive offers and a growing investor-operator partnership emerged as the buyer. Blueprint utilized its deep network of industry relationships to assist in sourcing viable insurance coverage policy proposals for the incoming operator to solidify the deal.

Prior to and until the time of sale, the facility was encumbered by a ground lease owned by a group of local investors. In addition to orchestrating the sale, Blueprint effectively negotiated a buyout on its client’s behalf to deliver the property free and clear. The real estate buyer and new operator worked swiftly through the transaction process to complete its first skilled nursing acquisition in Kentucky.

Ben Firestone, Christopher Hyldahl, Michael Segal, and Gideon Orion facilitated the transaction.

LEAD ADVISORS
Ben Firestone
Senior Managing Director, Founding Partner
(312) 300-4000
bfirestone@blueprintHCRE.com
Christopher Hyldahl
Senior Managing Director, Founding Partner
(310) 893-7181
chyldahl@blueprintHCRE.com
Michael Segal
Managing Director
(312) 300-4137
msegal@blueprintHCRE.com
Gideon Orion
Managing Director
(310) 893-7183
gorion@blueprintHCRE.com