Real estate investment services firm Marcus & Millichap recently brokered a short-term lease with an option to purchase of a Ventura, Ca. continuing care retirement community.
The CCRC is located on 12 acres of land and features 89 cottages and a seven story, 242-unit tower that offers both independent and licensed assisted living care. The campus also includes a 96-bed licensed skilled nursing facility.
The new operator plans to make major investments in the property to transform it into a state-of-the-art, full continuum of care community. Built in 1962, the independent and assisted living tower will likely take a fair amount of capital expenditures to upgrade common areas and units over the next few years to attract a higher paying clientele, says Rob Reis of Marcus & Millichap.
At the time of the transaction, the retirement community and adjoining cottages were 50% occupied, while the skilled nursing facility was running at capacity, with an exclusively private-pay and Medicare census.
The property’s primary value is within the skilled nursing facility because of its optimal patient mix, and the owner plans to focus on those operations while leasing the entire community until it reaches stabilization. The lease will be about $2 million annually, with a contemplated purchase option price of about $25 million.
The seller, a Los Angeles-based owner/operator, and the buyer, a Los Angeles family owner/operator, were both represented by Christopher Hyldahl and Reis out of Marcus & Millichap’s San Francisco office.
Written by Alyssa Gerace