Eskaton, a California-based not-for-profit provider of senior care services, decided to sell its Sacramento-area seniors housing community, enlisting the help of Brad Goodsell, Jason Punzel and Vince Viverito of Senior Living Investment Brokerage to get the deal done. Built in 1981 with several renovations since then, the Orangevale community features 90 units and 136 beds of both assisted living and memory care services. Occupancy was 77%, and the facility reported negative EBITDAR on about $4.86 million of revenues.
Eskaton divested the facility after a 2019 verdict forced the company to pay $42.5 million in punitive and compensatory damages to the family of a woman who died at the Orangevale community in 2012. The complaint alleged the community routinely gave the resident the prescription drug Ativan without her consent, which then resulted in her choking. Eskaton will continue operating its other communities.
So, a regional owner/operator with a strong presence in the area paid $7.8 million, or $86,700 per unit, for the community and has plans to spend upwards of $2 million to update it.
