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Constructed in 2012, the community was well-positioned in the Tucson MSA and operated with stabilized occupancy throughout the marketing process. It served a blended census of private pay and Medicaid residents through Arizona’s ALTCS program, offering investors a diversified payor mix. Despite stabilized occupancy, the community operated at a negative cash flow, presenting an operational turnaround opportunity.
Blueprint executed a competitive marketing process during a period of accelerating transaction activity, generating significant interest from a diverse buyer pool, predominantly private equity groups.
The asset was acquired by a national owner/operator with an established footprint in Arizona. The incoming ownership group is well-positioned to drive operational synergies, optimize expenses, and execute a credible path to stabilized cash flow under unified regional management.
Following the selection of the winning bidder, the transaction encountered timing headwinds due to the state licensing process, impacting closing timelines across Arizona. Blueprint remained closely engaged with both parties throughout the extended closing period, proactively managing the process, preserving deal economics, and ensuring alignment until the transaction closed.
While the broader Tucson submarket has a significant concentration of memory care supply, underlying market fundamentals remained strong throughout the marketing and closing process. The successful execution of this transaction underscores Blueprint’s ability to drive competitive outcomes on complex, cash-flow-challenged assets and navigate prolonged closing timelines without compromising transaction integrity.
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