Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage sold a 71-unit memory care community in Vista, California for $22.8 million, or about $321,000 per unit. Helping to push up that price was first, the location in the high-barrier-to-entry market of San Diego County, and second, its solid operations with a 29% margin on $5.85 million of revenues and an 88% occupancy rate. It was built in the last 10 years too, which helps. The single-asset, local owner decided to exit the industry, prompting the sale to a private equity group located in Colorado that owns several other senior living properties and some commercial assets around the country.
SLIB’s affiliated financing business, Monarch Advisors, which is run by Alec Blanc, sourced senior debt to fund the deal. The transaction consisted of an $18.1 million loan, including $1.9 million for planned capital expenditures, from a regional commercial bank. Featuring a five-year term and competitive rate, the loan was also structured with two years of interest-only payments and partial recourse from the buyer, with a burn-off provision.