A memory care community in Coos Bay, Oregon may have closed a couple of years ago, but a new owner recently took over the building thanks to Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors. Built in 1998, this 55-unit memory care community is located in Coos Bay on the central Oregon coast. Its previous owner originally acquired the community as part of a four-property portfolio in 2008, and Tyler Merrill of Merrill Commercial Real Estate was brought in to sell all four in 2018. Together, the four properties make up a continuum of care in the local area, but the Coos Bay community has been vacant since 2018.
In late 2019, the entire portfolio went into receivership, and the note was purchased by a hotelier based in Seattle. A receiver appointed Merrill Commercial Real Estate to continue the sales process. That’s when group of individual investors who were new to the industry brought a plan to continue operating the community as memory care while significantly investing in capex renovations. With Mr. Merrill representing the seller and Messrs. Mahoney and Bozett representing the buyer while also sourcing the capital for the acquisition, renovation and lease-up, the investor group paid $3 million, or $54,500 per unit, for the building. In addition, the hotelier who purchased the note stayed on as a capital partner, and the buyer hired a Northwest-based operator to manage the community. A reopening is planned within 120 days of the transaction’s closing at the end of August.