Scott Frazier of Blueprint Healthcare Real Estate Advisors helped an independent owner/operator exit the seniors housing business with the sale of their only asset in Orange County, California. Built in 1970 and renovated in 2008, the community comprises approximately 70 units of assisted living and memory care.
The current owner bought the property from Wells Fargo Bank in January 2011 for around $70,000 per unit. Investing in more upgrades to the community in 2011, the owner kept resident monthly rates below market. Occupancy was historically near 100%, but during the pandemic, census had declined steadily due to continued lockdowns to ensure the safety of its residents.
Mr. Frazier marketed the community as a value-add opportunity by highlighting the historical performance and the potential operational upside (mostly through rate increases) for a local owner/operator with a regional focus. As such, a private regional owner/operator based in Southern California emerged as the buyer, adding to its existing portfolio of four to five properties in the surrounding area. The asset sold for approximately $100,000 per unit.
