These communities were purchased in a sizeable portfolio transaction pre-COVID, under a value-add thesis contemplating operator transitions to create regional groupings coupled with the intent to meaningfully invest in renovations and repositioning

Unfortunately, the cumulative impact of COVID followed by an unprecedented rise in interest rates created meaningful headwinds to the original thesis and drove a portfolio re-prioritization, rationalization, and de-levering effort

Opened in 1999/2000, the Utah portfolio consisted of a 113-unit assisted living and memory care community in urban-infill Salt Lake City and a 75-unit assisted living and memory care community in Saint George. While performance varied between the communities, neither was stabilized. Additionally, the SLC community still offered the re-positioning of the inactive top floor (previously used for Skilled Nursing) as a further value-add opportunity. The seller ultimately elected to strategically divest and de-lever rather than continue to invest in a geography deemed non-core

Given the disparate and nuanced asset profiles, Blueprint ran a dual-pronged marketing process targeting both regional owner-operators who could efficiently pursue both assets as well as national investors drawn to the scale and value-add opportunity of the SLC asset. After receiving multiple bids from a diverse cross-section of established industry players, the seller ultimately selected the Pennant Group as a portfolio buyer

The transaction closed on time and efficiently after a collaborative process between Pennant, the seller, and the outgoing operator