Tyler Merrill of Merrill Commercial Real Estate took an Oregon memory care community that was in receivership and sold it to a group of individual investors new to the industry. To take on the turnaround, that buyer group hired a Northwest-based operator to manage the community. It’s not an easy time for that, to say the least, but with a purchase price of $3 million, or $54,500 per unit, there is certainty some wiggle room to add value.
Built in 1998, this 55-unit memory care community is located in Coos Bay on the central Oregon coast. Its previous owner originally acquired the community as part of a four-property portfolio in 2008, and Mr. Merrill was brought in to sell all four in 2018. Together, the four properties make up a continuum of care in the local area, but the Coos Bay community has been vacant since 2018. In late 2019, the entire portfolio went into receivership, and the note was purchased by a hotelier based in Seattle.
A receiver appointed Merrill Commercial Real Estate to continue the sales process. That’s when the buyer group, who were represented by Dan Mahoney of Blueprint Healthcare Real Estate Advisors, came in with a plan to continue operating the community as memory care while investing in significant capex renovations. Plus, the hotelier who purchased the note stayed on as a capital partner.
