Senior Care Providers Buy SoCal 200-Bed Facility From Landlords for $24M
A Los Angeles-based health care company has purchased the building it uses for a senior care facility from its landlord, according to brokers Avison Young.
California Healthcare & Rehabilitation Center, which was the tenant at 6700 Sepulveda Boulevard in Van Nuys, purchased the 49,818-square-foot property from Boca Raton, Fla.-based Pinnacle Holdings of Florida for $23.5 million.
“Ultimately, due to the higher costs of construction and capital required for development, senior housing operators provided the strongest buyer pool, and it made sense to negotiate a deal with the existing tenant,” Avison Young Principal Peter Sherman said in a statement.
California Healthcare & Rehabilitation Center will continue to occupy the 201-bed facility through the foreseeable future, per Avison Young. Representatives for the health care provider could not immediately be reached for comment.
The senior living and nursing home industry nationwide suffered during the COVID-19 pandemic, with more than 450 facilities closing their doors since the pandemic started in early 2020. Yet the likely rise of occupancy and demand, largely from aging Baby Boomers, is helping the industry rebound from its COVID woes.
Case in point is Westlake Senior Living Center, an 86-unit facility near Thousand Oaks, Calif., which in September secured a $43.2 million refinancing loan from Santa Rosa, Calif.-based Poppy Bank.
Nick Trombola can be reached at NTrombola@commercialobserver.com.