Estancia Del Sol in Corona, California | Courtesy Cushman & Wakefield

$382M Senior-Living Buy Includes SD, IE Properties

Carrie Rossenfeld Healthcare & Education

MBK Senior Living (MSL), a leading national operator of senior housing communities based in Irvine, California, has closed escrow on nine new senior-living communities under the West Living brand, located in California, Washington, and Arizona, sold by San Diego–based West Partners LLC for $382 million. Assembled primarily through acquisition, the stabilized portfolio also includes West Living’s first newly developed property, Estancia Del Sol in Corona, California, and The Montera in La Mesa, California.

This acquisition marks the company’s largest single purchase and expands the portfolio to 34 owned and managed communities located throughout the Western United States. The nine communities in the portfolio comprise a mix of independent-living, assisted-living, and memory-care programs and include nearly 1,200 units. The portfolio includes three properties in Southern California, four in central California, one in the Seattle area, and one in the Phoenix area.

MSL was represented by Latham & Watkins LLP in connection with this transaction. Koley Jessen P.C. L.L.O. served as legal counsel to West Living, while Cushman & Wakefield (C&W) Senior Housing Capital Markets, acting as exclusive advisor to West Partners, arranged the sale of the portfolio.

“This acquisition is part of MBK Senior Living’s aggressive growth strategy,” says Jeff Fischer, president of MSL. “The West Living communities are a complement to our existing communities and allow us an enlarged presence in the markets we serve, as well as the ability to expand immediately into new areas where there is a great demand for quality senior living with engaging programing and outstanding care.”

The new MBK Senior Living communities include:

· Estancia Del Sol — Corona, California, assisted living and memory care
· The Montera —La Mesa, California, assisted living and memory care
· The Reserve at Thousand Oaks — Thousand Oaks, California, assisted living
· Dale Commons — Modesto, California, assisted living
· The Commons at Elk Grove — Elk Grove, California, assisted living and memory care
· The Commons at Union Ranch — Manteca, California, assisted living and memory care
· The Commons at Thornton — Stockton, California, assisted living and memory care
· The Belletini — Bellevue, Washington, independent and assisted living
· McDowell Village — Scottsdale, Arizona, independent living and assisted living

Under West Living’s management, the portfolio underwent $25 million of capital improvement, and as of last measure reported portfolio occupancy over 90 percent. MSL plans to conduct further renovations as well as take advantage of the proximity of the properties to its other owned/managed properties.

In addition to the sale, C&W exclusively represented the buyer on approximately $30 million in acquisition financing provided by a regional bank for two of the nine assets. The C&W team involved in the transaction included vice chair Richard Swartz, executive director Jay Wagner, senior director Aaron Rosenzweig, and associates Sam Dylag and Alex Petrosian.

“With excellent locations such as Scottsdale, Bellevue, and Thousand Oaks, coupled with product and geographic diversity, the West Living portfolio represents one of the strongest western senior housing portfolios in the country,” Swartz says.