A California real estate investment company growing its senior living portfolio recently added its third property, a 61-unit assisted living community in Castro Valley, California for $8 million, or $131,100 per unit, with a 9% cap rate. The Solana Company, which also specializes in acquiring hospitality properties, was founded by Steve Barklis and Gary Elam, both with decades of experience in sourcing, developing and asset managing commercial real estate investment properties. Earlier this year, Solana acquired a 72-unit independent/assisted living community in Sacramento, California for $6.85 million, or $120,100 per unit, in a joint venture with Brickstar Capital. The company also acquired a 67-unit independent/assisted living community in Modesto, California. To finance the most recent transaction, Far East National Bank provided a $5.2 million loan. Solana plans to renovate the property (which was built in 1987), add three more AL units and convert twelve AL units to memory care, while bringing in Northstar Senior Living to manage. Occupancy stood at about 94% at the time of the sale. Rob Reis of Marcus & Millichap handled the transaction for the seller, a local family.
