The cost of opportunity
A regional owner/operator in California saw a value-add opportunity when it acquired a 119-unit assisted living/memory care community owned by a large real estate investment company in San Bernadino County. Built over 25 years ago, the community was just 67% occupied at the time of closing. It sold for $15.5 million, or $130,252 per unit, which is about $68,000 less than the average price for assisted living communities in the four quarters ended September 30, 2016, and probably even lower than the average price for California properties. So there is certainly an opportunity to add value, but the work has to be done. Jim Hazzard and Nick Stahler of The JCH Group handled the... Read More »
Oceanside on Oahu
Shep Roylance and Lee Blake of The JCH Group recently traveled to Hawaii to facilitate the sale of a 152-unit senior living property in Hauula. In this community, all of the units are licensed for assisted living, but a large portion of the residents require little to no care and are basically independent living. There are also memory care, hospice, respite and adult day care services. It was built in 1997 with 90,351 square feet on 7.98 acres, and comes with a 99-year land lease. A local owner/operator paid $6.64 million, or $43,684 per unit, for the community, and Messrs. Roylance and Blake represented both the buyer and seller in the transaction. Read More »New life for Pasadena ALFs
Shep Roylance of The JCH Group recently facilitated the bankruptcy sale of three assisted living communities in Pasadena, California. The portfolio featured a 70-unit/136-bed community built in 1951, a 20-unit/40-bed property built in 1940 and a 30-unit/60-bed community built in 1956. They are as old as the Baby Boomers. Occupancy ranged from 85% to 92% among the properties, but they could all use some capex. The three California LLC owners filed for bankruptcy protection in late 2015 and the auction and sale hearing were in January 2016, facilitated by Mr. Roylance. SYTR Real Estate Holdings, LLC was the buyer and will look to increase census and acuity at the communities. They paid $10.9... Read More »JCH pair closes two sales
The team of Jim Hazzard and Nick Stahler of The JCH Group closed the sale of two assisted living/memory care communities totaling $18.9 million. First up, an owner/operator sold its only senior care asset, an 86-unit AL/MC community in San Bernadino County, for $13.6 million, or $158,140 per unit. Built in 2002, the community featured 62 AL units and 24 memory care units, and was decently occupied at 86%. A national seniors housing owner/operator was the buyer and should be able to use some economies of scale to improve operations. And second, Mr. Hazzard and Mr. Stahler sold an assisted living/memory care community in San Joaquin County for $5.3 million, or $120,455 per unit. Again, the... Read More »Schedule a demo
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