California-based MBK Senior Living just acquired an assisted living/memory care community near its Orange County headquarters, with the Cushman & Wakefield team of Richard Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker and Bailey Nygard handling the deal. Originally built in 1999 with a $1.1 million renovation completed in 2019, the community features 48 units and 59 beds of assisted living and memory care. Since the capital improvements, it has since stabilized and experienced a competitive bidding process.
The seller, a joint venture between Cadence Living and an institutional equity partner, previously acquired this community from the not-for-profit HumanGood in 2017. Back then, we heard that the purchase price approached $250,000 per unit, but operations were apparently not strong. With the renovation and stabilization (and that Orange County real estate), we imagine the per-unit price has risen considerably, even amid the COVID-19 crisis. The actual purchase price was not disclosed, but there is still some room to add value.
