Generations Healthcare has made multiple senior care acquisitions this year, expanding its already-established footprint in California. First, over the summer Generations acquired Bradley Gardens, a 44-bed skilled nursing facility in San Jacinto, from a mom & pop. The renovation phase completed in October, with it re-opening as a full skilled nursing/behavioral health facility, giving much needed beds to Riverside County and surrounding counties. At the time of sale, it was not performing well.
Next, Generations acquired a standalone memory care community in October. Built in two stages in the 1980s and late 1990s/early 2000s, Claremont Hacienda is in Claremont with 58 beds. The seller was Sunwest Bank, which had brought in Ally Senior Living as the operator. The community was performing well at the time of closing, however, the interim management phase was long, so there is room for improvement. Generations maintained all employees and will be adding more.
The plan for the community is to invest in remodeling, plus create additional services. Renovations are already underway. Additionally, the community will function as a sister property to another Generations property about four miles from Claremont Hacienda in Upland, Heritage Court & Park. They will share management and support staff, which gives Generations more scale in the area.
This off-market, all-cash transaction did not feature many hurdles, but Generations did have to switch the license into its name, which is not a quick transition in the state. The acquisition was made as a joint venture with a bank. Given the community’s vintage, size and operating history, we would estimate the purchase price fell under $100,000 per bed.
This is Generations’ 31st community in California and the second property in Los Angeles County. Generations has a presence of close to 3,500 beds and 5,500 employees in the state, and is looking forward to growing in areas like Claremont. Stay tuned for more from Generations Healthcare (such as a substance abuse center opening in January, which was originally a memory care community).
