In a turnaround project gone right, Focus Healthcare Partners sold its independent living community in King City, Oregon (Portland MSA) after three years of ownership. Built in 1988 and previously renovated in 2008, the community featured 114 units, with 13 studios, 67 one-bedroom units, 24 two-bedroom units and 10 two-bedroom cottages. A partnership sold it to Focus in May 2017 for $14.8 million, or nearly $130,000 per unit. At the time, besides being 10 years on from its last renovation, the “C” quality community was under 80% occupied.
In came Focus Healthcare, which invested $2.3 million in renovations, upgrading all the common areas and units and bringing the community to “B” quality. That allowed Focus to increase rents and likely improve the operating margin, with Artegan managing the community.
Cody Tremper and Mike Garbers of JLL handled the sales process, putting the property under LOI at the end of 2019 and closing in August. In that time, occupancy actually went up to 93%, and the building did not record a single COVID-19 case. An undisclosed buyer secured financing with a conduit lender. Artegan will stay on as operator.
