Three and a half years after purchasing a 97-unit assisted living/memory care community in Silicon Valley (in the town of Fremont, to be more specific), Capitol Seniors Housing is exiting the asset, making a tidy return we imagine, thanks to Rick Swartz, Jay Wagner, Aaron Rosenzweig and Alex Petrosian of Cushman & Wakefield, who represented CSH in a competitive bidding process.

Since acquiring the property from Westport Capital Partners in 2014 for $23.75 million, or about $244,800 per unit, CSH and its operating partner, MBK Senior Living, worked to improve the community’s occupancy, which sat at 81% in 2014, and margin, at just 19%. CSH invested upwards of $1.0 million to improve the community, which was built in 2004, and operating costs were thought to be high at the time, so any increase in occupancy wasn’t expected to generate much in extra expenses. Since 2015, the property has been fully occupied, and while current operations weren’t disclosed, we have to imagine CSH followed through on its operating goals to an extent.

A joint venture between Kayne Anderson Real Estate Advisors and Watermark Communities (which will operate) acquired the community for an undisclosed (but aggressive, we hear) price. To help finance the deal, Aron Will of CBRE originated a $16.7 million, 10-year loan, with a fixed interest rate and full term of interest only, through its Fannie Mae DUS Multifamily loan origination program.