It took a lot of creativity and nearly two and a half years for an assisted living/memory care community in San Francisco to find a new owner, that new owner being the City of San Francisco. Rob Reis of Marcus & Millichap handled the transaction, representing the national owner/operator seller in the process. Reis cast a wide net, including municipalities, before procuring the City as the best buyer option.
Comprising two buildings, including an older Victorian structure dating back to before the 1906 earthquake but that was converted to assisted living in 1997, the community also features a purpose-built structure completed in 2005. Together, they comprise 52 units and 79 beds, although with no private bathrooms.
When the City of San Francisco emerged as the ultimate (and the only) buyer, they had originally planned to convert the building to behavioral health and had the in-place operator gradually empty it of its residents and staff. However, after the building was vacated, the City had a change of heart and decided to re-license the building as an assisted living community. They’ll now have to re-staff the building from scratch, as a result. Oh well. The City paid $13.78 million, or $492,000 per unit, for the newer 28-unit building community, and the older building (also featuring 24 units) is set to sell at the end of October for $11.03 million, or $460,000 per unit, subject to minor changes.
