Constructed in 1986 with an expansion completed in 2006, Las Villas Del Norte is situated in an affluent submarket north of San Diego. The community had initially offered a wider spectrum of senior care including independent living and a dedicated wing for skilled nursing and long-term care. Following the campus addition of the independent living building, it was eventually converted to house high acuity assisted living residents. As community management underwent several corporate-level changes, operational performance suffered, leading to the closure of the skilled nursing wing as new management focused on a lower acuity product. As a result of the declining trends, and with the care mix a poor fit for the new manager, the seller engaged Blueprint to market the community for sale.
During the marketing process, Blueprint highlighted the value-add proposition of repurposing specific areas of the community to reset Las Villas Del Norte’s care levels to a mix of independent living, assisted living, and memory care. By strategically reconverting the former high acuity assisted living building back to independent living and skilled nursing wing to additional memory care, significant upside was achievable given the community’s and local market’s high occupancies and rental rates for these care types.
Blueprint garnered interest from sophisticated investors and operators seeking growth opportunities in the region. The buyer chosen is a locally based and privately held real estate investment firm with experience repurposing senior care properties. Throughout the sale process Blueprint worked diligently with all parties to ensure a timely closing and smooth transition.
Ben Firestone, Michael Segal, Alex Florea, and Scott Frazier facilitated the transaction.