Faris Lee Investments Completes Bay Area-Hayward’s Largest Senior Housing Investment Transaction

Irvine, CA (June 3, 2019) – Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $39 million off market sale of Casa Sandoval, a 187,926-square-foot senior housing community in Hayward, CA.

Kayne Anderson Real Estate, a Florida-based private equity firm, acquired the property using their recently raised $1.85 billion private equity fund; Kayne Anderson Real Estate Partners (KAREP V), which is reported to be their largest fund focusing on senior housing, medical office buildings along with student housing.

Gene Ventura, Senior Managing Director, with Faris Lee Investments represented the buyer in the transaction. Mr. Ventura leads the Senior Living and Hospitality group at the firm. Ventura and his colleagues at Faris Lee work in an advisory capacity with real estate owners to determine how to best monetize underutilized opportunities nationwide.

Constructed in 1990, the Casa Sandoval community offers a total of 235 licensed beds for independent, assisted living, and memory care expansion under a redevelopment capital investment improvement plan. Located within the heart of Hayward in the East Bay of Northern California voted one of the top 10 City for successful aging by Milken Institute, Casa Sandoval features adjacent access to California’s 1st Japanese Garden, which is an ideal amenity for senior residents.

The US senior living sector is attracting worldwide developers and investors into opportunistic equity funds. It is one of the fastest growing real estate sectors in today’s economy, all of which have returned attractive IRRs and cash-on-cash multiples to investors. The industry has added over 20,000 new units a year for the last three years. Further, capital sources for debt and equity for senior living have increased as a result and continue to become more competitive.

“The rate at which American Seniors are retiring is staggering. Nearly 80 million baby boomers will reach 65 by 2025, creating a great demand for senior living communities. This sector is experiencing a new high and with its proven resilience to the economic expansions and contractions, we are confident that this sector will continue to thrive over the next decade,” says Gene Ventura, Senior Managing Director with Faris Lee Investments.

Additionally, Senior Housing and Hospitality operators tend to fit well in retail environments because the real estate is typically located near a variety of thriving retail centers, medical services, restaurants, and other amenities that appeal to a growing segment of seniors and travelers. Through an advisory process that produces a strategic plan to maximize asset value, Faris Lee was able to guide the buyer to capture the opportunity for a successful off market transaction.

About Faris Lee Investments: Faris Lee Investments is a national leading retail advisory and investment sales firm. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Through its recent strategic partnership with X-Team Retail Advisors, a nationwide affiliation of seasoned retail leasing experts, Faris Lee offers a fully integrated platform with disciplined expertise in landlord leasing, tenant representation, capital markets, and investment sales to maximize value for clients.
For more information, visit www.farislee.com
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