48 memory care suites in north Scottsdale. Furnished, purpose-built and under contract. Here's why I loved it, why we let it go inside due diligence, and how to get first look at the next one.
I've looked at a lot of care-based real estate. This one stopped me. Four reasons.
Purpose-built memory care, one story, refreshed inside within the last two years. It came with resident furniture, a fitted commercial kitchen and laundry. The plan was a refresh and re-license, not a conversion. That's very hard to find.
We partnered with an operator who holds active Arizona licensure and already runs a licensed memory care community here. In this asset class the operator is the deal. We had a good one.
Assisted living and memory care demand follows the 80+ population, and that wave starts now. New senior housing construction has slowed while that group grows. Owning beds ahead of that curve is the whole thesis.
Buy it, re-license it with the state, lease it up, then refinance into long-term HUD senior housing debt. We had underwriting, lenders quoting and investors lined up.
The deal you don't do is part of the track record.
Due diligence exists for exactly this. Walking cost us time and some legal and inspection fees. Closing the wrong building would have cost a lot more.
Same story, short enough to send to someone. If you know an investor who'd appreciate an operator who walks when the numbers or the building don't work, pass it along.
This deal didn't change the thesis. It sharpened the filter. We're still building an assisted living and memory care vertical with operators who already run licensed communities in Arizona. The next building has to work for the residents first.
Alongside that, Asset Stream keeps doing what it's done since 2007: Phoenix Metro multifamily, land and care-based real estate.
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