It took a couple of tries, but JCH Senior Housing Investment Brokerage sold a senior care facility in Riverside County, California. Featuring 64 skilled nursing and 49 assisted living beds, the facility was owned and operated by a family business. Occupancy was relatively stable at the SNF, but census at the assisted living portion was virtually non-existent. So, the appraiser allotted no value to the ALF.
The facility was originally in escrow when COVID-19 hit and the first-time buyer decided not to proceed. JCH immediately began marketing the property again and in less than two weeks had five competitive offers. The seller decided to give another first-time buyer the go-ahead, with a final sales price of $5.4 million, or $84,400 per bed, and a 9% cap rate.
JCH worked through the challenges of several lenders backing out before ultimately selecting one wishing to get into the space. That’s quite a time to enter the market, and we hope it works out well. JCH also helped the buyer in setting up a lease with a local assisted living operator who looked to expand its presence in the area. Cindy Hazzard and Jennifer Contreras handled the whole transaction process.
