We do not see deals like this often. In a full circle transaction, Blake Bozett and Spud Batt of The Zett Group sold a large seniors housing community in Eugene, Oregon, to a Salem, Oregon-based group in partnership with a new operator through a pre-established JV structure. Bozett represented his grandparents, Ron and Joyce Knutson, a pioneering couple who first got involved in the seniors housing space in the 1970s in the Pacific Northwest. The Eugene property was one of two communities left in the family’s hands, with the other in Spokane, Washington.
Built in 1979 by the Knutsons, Churchill Estates features 241 units of independent living, assisted living and memory care, one of the largest communities in the state of Oregon. Ronald Roderick, from another pioneering seniors housing family in the Pacific Northwest (he was the father of Greg Roderick, the founder of Frontier Senior Living), was an original partner in the community. It was an operational juggernaut for many years. But the pandemic, combined with the community’s distance from the family’s base in Spokane, took a toll on operations, and the community was not stabilized.
So, the Knutsons decided to sell, enlisting the help of their grandson, Blake Bozett. Unfortunately, after the deal went under contract, Ron, lovingly known as “Poppie,” passed away at the age of 90 and after 71 years of marriage. “Poppie” was a force of nature, a skydiver at 85, an avid golfer, a man of deep faith and a relentless giver, and his legacy is being honored through the newly established 501 (c)(3) called“Poppie’s Legacy Foundation.”
Despite the personal loss, the deal successfully closed a few months later, with the property commanding a purchase price of $18.5 million, or $76,800 per unit. In addition, the family was able to stay in the deal with a piece of senior secured seller financing that would provide consistent trust payments. It solved for the family estate motivations and mitigated any tax liability. The capital stack also included equity and mezzanine financing.
Bozett’s career in seniors housing brokerage also began when a broker had initially reached out to the Knutsons to prospect the family portfolio, prompting a conversation with Bozett, who was in banking at the time, and leading to Bozett’s first senior housing brokerage job thereafter. Talk about full circle. The Zett Group has an active pipeline, which currently represents over $100 million in active engagements.
