A senior living community in the San Francisco Bay area is heading in a different direction under new ownership, after Rob Reis of Marcus & Millichap arranged the property’s sale. Family-owned and -operated for over 40 years, the 158-unit community featured independent living, assisted living and memory care services, with a total of 194 beds. Built in phases from 1961 to 1980, it was producing substantial cash flow and operated efficiently, but the building was in need of substantial renovations.
Set in the city of Hayward, the community was about to face some new high-quality competition from local developments by MorningStar Senior Living and SRM Development. Occupancy was also low at around 50% in 2021, but it did operate at a solid 25% margin on more than $3.2 million of revenues. However, current operations did not matter too much in the end, because the buyer, Bay Area Community Services, plans to run the community more as a transitional housing center for the homeless. The not-for-profit Bay Area Community Services paid $17 million, or $107,600 per unit.
