Aron Will, Austin Sacco and Adam Mincberg of CBRE helped arrange acquisition financing on behalf of Angelo Gordon & Co. and Auctus Capital Partners to purchase an assisted living/memory care community in Oakland, California. Located in the affluent submarket of Rockridge, this 148-unit community was originally built in 1981 but recently underwent two multimillion-dollar renovations which have made it a top competitor in the area.
The first renovation in 2013 converted 30 assisted living units into a dedicated memory care wing, and the second renovation in 2016 (at $4.8 million) saw updates made to the interior and exterior common areas, amenities, units and landscaping. On top of that, the new owners plan on investing more capex into further enhancements. With competition as fierce as it is now, every penny counts.
Included in this community are 30 very-low-income units that will transition to market rates starting in 2021. Once that happens, they should produce an extra $2,000 of revenue per unit per month. Integral Senior Living has operated the community since the seller, The Carlyle Group, purchased it in 2013 and will continue to do so.
CBRE, through its Freddie Mac Seller Servicer direct lending program, secured a $35.23 million, seven-year, fixed rate loan with 48 months of interest only. Ryan Maconachy and Chad Lavender of HFF handled the sale, which came at a purchase price of $61.4 million, or about $415,000 per unit. That’s the price of land in the Bay Area for you.