Rock Chalk Blackhawk
Blueprint handles REIT exit of Kansas assisted living investment
Located in the southwest Kansas City, Kansas MSA, Leawood Gardens is a 70-unit assisted living and memory care community in Johnson County, and Blackhawk Assisted Living is a 48-unit assisted living and memory care community located in Miami County.
Both communities were built in the early 2000s with subsequent renovations, and occupancies remained relatively stable above 90% prior to the operational transition to a West Coast-based national assisted living manager in 2017.
Following a stretch of unexpected community-level leadership turnover and units taken offline for major capital improvements, resident occupancy levels dropped and rates gradually declined.
Performance began to rebound in 2019, continuing to climb through the challenges of 2020, at which point Blueprint was selected to market and sell the value-add communities.
Promoting the positive trends, senior demographic demand drivers, and attractive stabilized return profile, Blueprint’s initial marketing campaign procured multiple written offers from regional operators and private equity acquirers.
The seller chose a growing regional operator as the prevailing acquirer, which ultimately partnered with an East Coast-based equity provider to capitalize and close the transaction.