Jim and Cindy Hazzard of JCH Senior Housing Investment Brokerage announced a series of successful sales on the West Coast. They started out by selling an 80-unit assisted living/memory care community in Stockton, California. In the deal, they represented the family-owned owner/operator who was looking to retire from the business. The team fielded several competitive offers and ultimately chose a local owner based in the area that was looking to grow their portfolio.
It won’t be a piece of cake, but what is these days? The facility struggled after COVID and was under a lot of scrutiny from licensing. This, coupled with the strict lending requirements imposed for SBA 504 loans, made for a complicated escrow period that led the buyer to eventually close the deal with a bridge loan to cover the $5.8 million, or $72,500 per unit, purchase price.
Next, the Hazzard’s closed the sale of a 35-unit memory care community in Orange County, California. Working on behalf of a successful operator of a home health and hospice business that wanted to branch out into the assisted living and memory care sectors, JCH searched for a community that fit their investment criteria, settling on this property after a brief negotiation with the asset manager.
COVID-19 struck the community and caused census to decline. Occupancy is now heading in the right direction, but the outbreak made obtaining debt for the deal very difficult. But the lender stayed with the deal, and the purchase price ended up being $4.7 million, or over $134,000 per unit.
Cindy Hazzard and JCH’s Jennifer Contreras then closed the sale of a portfolio of four Intermediate Care Facilities in Merced, California. ICFs, which tend to be small, provide long-term care and assisted living services to individuals with intellectual disabilities, with revenues coming from Medicaid, long-term care insurance or private pay. The sellers were second-generation operators that engaged with JCH to exit the business. An experienced independent owner/operator stepped in to purchase the portfolio for $2.11 million, selecting a regional lender on JCH’s advice to finance the deal.
Lastly, Jim and Cindy Hazzard negotiated the lease of a 68-unit/120-bed assisted living/memory care community in Stanislaus County, California. The landlord, a family owner/operator looking to retire from the operating business, struggled to maintain census and keep up with new licensing requirements. That led to a licensing revocation hearing, but a local adult residential facility (ARF) operator emerged as the winning bidder to take over operations. They plan to convert the building to an ARF.
