Carespring Health Care Real Estate Portfolio

The Situation

When a joint venture between Ventas REIT and a Florida Pension Fund managed by Prudential decided to sell the real estate for eight skilled nursing facilities in the southern Ohio and northern Kentucky, they approached the team led by Mark Myers and Joshua Jandris of Walker & Dunlop* for assistance. Understanding the importance of this transaction for both the real estate owner and the existing operator, and the premium price per bed expected for the sale, the team focused on procuring buyers who were seeking only the best long-term care properties and operators.

The Solution

In just 45 days, the team identified a private investment fund from New York City, Northwind, to acquire the eight Carespring assets for $181.5 million. Additionally, they assisted in the negotiations of a new lease between the existing operator, Carespring, and the real estate buyer, Northwind.

The Results

The result was one of the highest sales prices per bed on record for skilled nursing homes. The process required complex negotiations between all parties, as well as an innovative approach. This transaction helped the JV exit the real estate at a premium price and allowed the private investment firm to invest its capital in a portfolio of high-quality nursing facilities. Additionally, it connected the real estate investor with an industry-leading operator under revised lease terms that provided a win-win for both parties.

*Myers and Jandris completed this transaction while at another brokerage firm.