At the time of initial marketing, operational performance was relatively stabilized by the third-party provider tenant under separate lease agreements; however, the validity of the leases was under contention. Blueprint generated multiple Stalking Horse bids, with the selected Stalking Horse, US Healthcare Group, approved by the Court in July 2025 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 facilities both subject to the existing leases, and separately, for the facilities free-and-clear of the existing leases. Blueprint generated considerable market interest resulting in multiple qualified overbids.

Following the auction and pursuant to the Judge’s final Sale Order, Blueprint worked diligently alongside all parties as the Stalking Horse ultimately prevailed and closed on the real estate acquisition subject to the existing leases. The purchase price was $43.5 million, which equates to $123,000/bed and an approximate 9.25% cap rate on Year 1 rent.