The Knapp-Stahler Group is pleased to announce the successful sale of a multi-building memory care community located in an affluent San Diego County submarket. The transaction was led by Nick Stahler, Justin Knapp, Michael Mooney, and Hap Knowles.
The community consists of seven buildings and more than 55 units licensed for over 85 memory care residents. Originally developed in 2002, the campus features a differentiated design combining residential-style cottages with purpose-built care buildings, allowing operators to effectively cohort residents by acuity level while delivering a highly personalized care environment. Situated on a scenic hillside setting, the property offers unique amenities and a residential atmosphere uncommon among traditional memory care communities.
While the asset benefited from strong demographic fundamentals, high surrounding home values, and limited near-term competitive supply, the transaction required navigating significant operational challenges. At closing, the community was generating negative NOI, creating a highly specialized marketing and execution process.
Despite these headwinds, The Knapp-Stahler Group successfully secured an all-cash buyer and achieved pricing of approximately $170,000 per unit, underscoring continued investor demand for well-located memory care assets with operational upside in high-barrier-to-entry California markets.
The seller, a public REIT, had supported operational shortfalls for an extended period while remaining committed to maintaining quality care and resident services. Their continued investment in the community despite financial challenges reflected a steadfast commitment to resident well-being and responsible ownership.
The buyer, a growing regional owner/operator, has been strategically expanding its California footprint and has assembled a portfolio of more than ten communities throughout the state. The acquisition aligns with the buyer’s long-term growth strategy and belief in the asset’s operational potential.
“This transaction highlights the depth of capital seeking quality senior housing opportunities, even in situations where operational performance has lagged,” said Nick Stahler. “Successfully achieving an all-cash outcome at this pricing level despite negative NOI reflects both the quality of the real estate and the strength of the buyer demand we were able to generate.”
The transaction further demonstrates The Knapp-Stahler Group’s ability to execute complex senior housing assignments and create liquidity for owners facing operational, financial, and market challenges.