Jim and Cindy Hazzard of JCH Senior Housing Investment Brokerage headed to Marin County, California to sell a boutique 29-unit assisted living community in the affluent town of Mill Valley. Originally constructed as a skilled nursing facility but converted to assisted living over 15 years ago, the community was underperforming with an operating margin around 14% on about $1.6 million of revenues.
The physical plant was in good shape, and there was limited competition in the area, but the community was the seller’s last one in northern California. So, a little attention and a renovation should go a long way in improving operations. After a refurbishment, rents could also be raised to reflect its location in high-income Marin County. Some units will also be converted to memory care. A&A Senior Living and Management will take over operations for the new local owner, which paid $3.8 million, or $131,000 per unit.
A&A also took over management of a 122-unit assisted living community in Riverside, California. Jim and Cindy Hazzard arranged the lease negotiation on behalf of the single-asset landlord, which previously had Brookdale Senior Living operating the property. JCH solicited bids for either a fee simple sale or a re-tenanting, resulting in a new multi-year, triple-net lease with A&A, which has plans to execute a purchase option by 2025.
