Blueprint completed a complex, multi-stage transaction by swiftly swapping operators, efficiently shopping to identify the optimal real estate purchaser, and actively assisting its REIT client in a timely and strategic non-core asset divestment.
The asset is a large-scale skilled nursing and long-term care facility situated in a desirable, yet highly-competitive, submarket just north of downtown Philadelphia. The in-place management team assumed operations in 2015 but struggled to maintain consistent leadership, leading to poor surveys and regulatory challenges. To help ease management inefficiencies, several departments were outsourced but operational performance continued to decline.
Blueprint positioned this as a value-add opportunity with substantial upside in quality mix on already strong in-place revenues. It strategically targeted an established provider in the area that swiftly mobilized their local team to step into operations just a few days following offer acceptance. With operations transitioned seamlessly, Blueprint then structured the sale of the real estate to a third-party investor that executed a lease agreement with the new operator. The transaction was a win-win for all parties involved.
The transaction was coordinated by Michael Segal and Ben Firestone.