Inland Empire Senior Housing Commands $58M
Cushman & Wakefield negotiated the sale of a Southern California continuing care retirement community to a buyer which plans to convert the asset to a rental property.
Senior Living Riverside, an affiliate of Westmont Living, has acquired Altavita Village in Riverside, Calif. The continuing care retirement community is the third-largest in California. The cost of the acquisition was $58 million, representing approximately $98,500 per unit. Cushman & Wakefield negotiated the sale of the property.
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Altavita Village will be rebranded as Westmont Village. Senior Living Riverside intends to invest $20 million in the property over several years, converting the entire property to a rental community and discontinuing existing CCRC contracts.
Situated on an approximately 153-acre site at 17050 Arnold Drive, roughly 62 miles west of Los Angeles, the property currently features 267 independent living cottages, 103 independent living apartments, 70 independent living duplexes, 55 assisted living units, 59 skilled nursing beds, and 35 memory care units across the 1,222,689-square-foot community. The asset was 40 percent occupied at the time of sale.
“There were multiple challenges marketing this community,” Allen McMurtry, Cushman & Wakefield executive director, told Multi-Housing News. “It had been under agreement two separate times before we were involved. Due to the turmoil of these unsuccessful bids, confidence in the financial future of the community from both residents and the market in general was low, leading to declining occupancy and the inability to attract new residents.”
Cushman & Wakefield was able to reach numerous potential buyers. “Altavita Village has a significant number of positives,” McMurtry said. “With a thoughtful capital improvements plan and better managed expenses by an experienced operator, the community should be able to reach stabilization. Westmont Living fully recognized that potential.”
Among the amenities at Altavita Village are main and private dining rooms. The residences average 1,600 square feet in size. Beginning in 2013, the previous owners invested more than $8 million in upgrades at the community.
Developed in 1989, the asset is adjacent to March Air Reserve Base. It originally served as a retirement community for military officers, opening to the general public in 2015.
Earlier this month, Cushman & Wakefield brokered the $47.6 million sale of The Vinings at Market Common, a 288-unit multifamily community in Myrtle Beach, S.C.