Fallbrook Rehabilitation & Care Center is licensed for 202 total beds, of which only 91 were dually certified for Medicare and Medicaid at the time of sale. With a nearby, newer facility capturing the majority of local Medicare census, Fallbrook's payor mix skewed toward Medicaid, underscoring the need for capital investment to reposition the facility as a more competitive draw for higher-reimbursing Medicare admissions. The facility was also on the CMS Special Focus Facility (SFF) Candidacy List and included an on-site dialysis unit and ventilator-capable infrastructure that were not being utilized under the outgoing operator, creating multiple avenues for a well-capitalized buyer to invest capital and reposition the asset as a more competitive provider in the submarket.

Blueprint generated a Stalking Horse bid at a purchase price of $12,250,000, which was court-approved subject to an auction sale. Thereafter, and according to the bidding procedures, Blueprint's marketing efforts for qualified overbids focused on procuring competitive offers to acquire the facility free and clear of any property-level debt. Blueprint's process sparked a spirited bidding battle at auction, as two additional qualified bidders went head-to-head with the Stalking Horse through numerous competing rounds, ultimately driving the purchase price well above the initial bid.

Following the auction and pursuant to the Judge's final Sale Order, Blueprint worked diligently alongside all parties as a qualified overbidder, ultimately prevailed, and closed on the real estate acquisition on July 6th, clearing the outstanding debt held by the secured creditor.

The purchase price was $15 million, which equates to approximately $74,300/bed, a premium of roughly 22% over the Stalking Horse bid.