A regional owner/operator in California saw a value-add opportunity when it acquired a 119-unit assisted living/memory care community owned by a large real estate investment company in San Bernadino County. Built over 25 years ago, the community was just 67% occupied at the time of closing. It sold for $15.5 million, or $130,252 per unit, which is about $68,000 less than the average price for assisted living communities in the four quarters ended September 30, 2016, and probably even lower than the average price for California properties. So there is certainly an opportunity to add value, but the work has to be done. Jim Hazzard and Nick Stahler of The JCH Group handled the transaction.
The cost of opportunity
