Winterhaven, located in Houston, was built in 1970 and consists of 160 beds, of which 143 are dually certified. Heritage Place, located in Mesquite (suburban Dallas), was built in 1977, and is comprised of 149 beds, including 138 dually-certified beds. At the time of sale, the facilities were collectively approximately 75% occupied with a quality payor mix of 15%. While the facilities generated greater than $12.5 Million in total revenue on a consolidated annualized basis, the trailing cash flow at the time of sale was roughly $500,000, which represented an operating margin of only 4.0%.
Blueprint succeeded in effectively communicating the value-add story from the commencement of the confidential marketing process through to closing. Blueprint grappled with many of the typical issues that arise when selling assets of this vintage and quality within a regulatory environment having limited barriers to entry. Blueprint’s marketing campaign fostered a competitive bidding process which translated into achieving and surpassing its client’s proceeds objectives.
The purchaser, a private investor known for its national presence as a skilled nursing landlord, paid $10,000,000 for the properties representing a price of just over $30,000 per bed.
Ben Firestone was the lead advisor on the transaction.