Blueprint Handles $145M, 17-Property Trade; CareTrust Expands Texas Skilled Nursing Portfolio

Blueprint announced the sale of a large skilled nursing portfolio in Ohio this week for $145 million or roughly $73,000 per bed.

The portfolio consists of over 2,000 skilled nursing beds spread across 17 facilities in the state.

Originally purchased in 2018 by a joint venture between an experienced investor and a growing Ohio-based operator, the performance of the portfolio reportedly declined during the pandemic after strong historical numbers with over $100 million in yearly revenue.

Blueprint received seven competitive offers and an East Coast-based owner-operator was ultimately selected.

CareTrust Acquires 155-Bed SNF

CareTrust REIT, Inc. (Nasdaq: CTRE) recently acquired the Ennis Care Center, a 155-bed skilled nursing facility in the Dallas-Fort Worth area.

The facility will be added to CareTrust’s existing master lease with Eduro Healthcare, who took over operations on Feb. 1.

The acquisition increases CareTrust’s relationship with Eduro to nine facilities Eduro’s annual rent under their master lease will increase by $815,000.

The initial term of Eduro’s master lease was also extended by four years in connection with the transaction.

“We’re elated to expand our relationship with the Eduro team,” Dave Sedgwick, CareTrust’s CEO and president, said in the news release. “Eduro has proven over the past few years that their model of patient centered care and extreme focus on facility culture produces great results for their residents and staff.”

With the four-year extension of the initial term, the CareTrust master lease with Eduro has a remaining initial term of approximately 12 years. The acquisition was funded using cash on hand, according to the release.

ESI Helps Sale of Massachusetts Skilled Nursing Portfolio for $42.5M

Evans Senior Investments announced the sale of three skilled nursing facilities for an independent owner/operator for a purchase price of $42.5 million or $111,000 per functional bed/unit.

The portfolio totaled 384 licensed skilled nursing beds – 359 functional beds — and all three communities are located within 10 miles of downtown Boston.

Occupancy was 80% across the portfolio during marketing, with $40,700,000 of revenue and a 5% net operating income margin.

ESI ran a selective and confidential marketing process ultimately securing Eagle Arc Partners, an institutional buyer, in just three weeks.

ESI represented the seller, an independent owner/operator in their exit from the long-term care industry.

$39M SNF Portfolio Sale For SLIB

Senior Living Investment Brokerage facilitated the $39 million sale of four skilled nursing facilities spread across Texas.

The portfolio offers 466 total skilled nursing beds and is located between San Antonio and Houston, all within 70 miles of each other.

The seller is reportedly a regional owner-operator looking to consolidate its portfolio, while the buyer, a regional owner-operator based in Chicago, is looking to expand their portfolio in Texas.

SLIB ran a national, confidential market for this offering, receiving multiple offers from both regional and national buyers to purchase this community.

SLIB’s Matthew Alley handled the transaction.

Berkadia Arranges $47M in Financing for Five SNFs

Berkadia Seniors Housing & Healthcare last month secured $47 million in financing for five skilled nursing facilities across the country.

The deals included $14.45 million in Department of House and Urban Development (HUD) refinancing on a 40-bed, Medicare-only skilled nursing facility located in Sacramento, Calif.

The property reportedly contains all private rooms and caters to individuals in need of short-term rehab. Occupancy at the time of closing was approximately 95%.

A $10.4 million bridge loan was also secured for a repeat client in a separate transaction to refinance existing HUD debt and cover approximately $3.6 million of capital expenditures for a 105-bed skilled nursing facility located in Yakima, Wash. Funded improvements include common area and resident room renovations, interior and exterior repainting, as well as new nursing stations throughout the building.

For the third transaction, a $9.2 million HUD loan was secured for a 90-bed skilled nursing facility, located in East Haven, Conn.

The Connecticut-based buyer acquired the property for $8.5 million in 2018 after the prior owner had defaulted on their debt. The buyer subsequently invested over $1.5 million into the property for capital expenditures, including a new therapy gym. These improvements increased occupancy to the mid-90s and quality mix to 15%, resulting in a valuation of $11.5 million.

An 80% loan-to-value loan paid off the first mortgage, as well as additional debt incurred in connection with the renovation.

Finally, interest rate reductions were secured on two existing HUD loans totaling $13 million for a Baltimore, Md.-based sponsor.