Initially looking to wind down its tenant’s presence in the Southwest, Blueprint was engaged by the seller to divest of Paloma Blanca, a 119-bed skilled nursing facility in Albuquerque. Situated in a desirable location with proximity to several hospitals, the property had been well-maintained since it was built in stages throughout the 1970s and early 1980s. Operationally, however, the asset encountered several challenges. Blueprint’s marketing campaign focused on sourcing prospective operators able to unlock value through an operational turnaround.
The process attracted a newly-established operator backed by an inconspicuous, California-based buyer with a developing business plan to expand into new states through strategic partnerships with ambitious and growing regional providers. Blueprint identified a unique opportunity to leverage the REIT’s position by approaching the buyer with another skilled nursing facility, also located in New Mexico. The second facility, Vida Encantada, was operated by a different tenant and was also designated as a non-core disposition candidate by the REIT. Consistent with the objective of rationalizing its portfolio, the seller accepted the Blueprint-procured offer from the same buyer to acquire the real estate subject to the existing NNN lease.
Blueprint was able to efficiently and concurrently facilitate the two distinct transactions and, while the due diligence and closing period brought about certain unexpected hurdles, Blueprint also helped to set forth creative solutions for all parties to overcome the challenges. The two transactions closed simultaneously in under 75 days from contract execution. The acquisitions represent the buyer’s first ventures in the state and with the respective operators.
The transactions were handled by Michael Segal and Ben Firestone.