A couple of California seniors housing communities changed hands as part of a larger divestment strategy for the national developer/investor seller. Before the pandemic, that entity had purchased more than a dozen geographically disparate, older-vintage communities. But operational headwinds prompted a portfolio re-prioritization and de-levering effort. The owner engaged Kevin Lukehart, Alex Florea and Scott Frazier of Blueprint to create an exit strategy for the assets.
The latest two communities to sell consisted of a 1986-vintage, 157-unit assisted living community in Corona, California, and a 1998-vintage, 101-unit assisted living and memory care community in Roseville, California. While performance varied between the communities, neither was performing.
Both private-pay and waiver-focused California owner/operators and private investors who could leverage an attractive basis to re-position the assets were approaching. After receiving multiple bids, the seller ultimately selected Sunny Hills Management Co., for an undisclosed price.
