Ziegler served as exclusive financial advisor in the successful sale of St. Paul’s Plaza, a 155-unit seniors housing community located in Chula Vista, California. The seller was St. Paul’s Senior Services, a not-for-profit organization that was looking to expand in PACE (Program of All-Inclusive Care for the Elderly) as well as provide more affordable seniors housing and healthcare solutions.
Built in 2015 on 4.5 acres in the affluent suburb of San Diego, the Class-A community features 155 units of independent living, assisted living and memory care. There are 71 studio, 81 one-bedroom, and two two-bedroom options. Plus, there is room for expansion. It was decently occupied and generated positive cash flow, but the operating margin (between 10% and 15%) could be improved under new ownership.
IRA Capital, a Southern California based private equity company, emerged from several bidders as the ultimate buyer, bringing on Integral Senior Living to assume management. Based on the quality of the real estate, its location and the performance, we suspect the price fell between $220,000 per unit and $250,000 per unit. IRA will also be investing significant capital into the community through common area renovations, increased activities and programming, and improving the dining experience.
The Ziegler team, led by Humair Sabir, included Sarkis Garabedian and Darren Bell. They facilitated negotiations, conducted due diligence, and ensured a smooth closing that met the needs of both the not-for-profit seller and for-profit buyer.
