Connected assisted living, nursing facilities sell for $40M

Links Healthcare Group has gone from operator to owner of a skilled nursing facility connected to an assisted living center in San Jose, paying $40 million to acquire more than 300 beds in a type of asset trade rarely seen in Silicon Valley.

The connected properties host the 258-bed Westwood Post-Acute skilled nursing center, the kind of facility often used for care after a hospital stay, and the 60-bed Westgate Villa assisted living community. Westwood spans two adjacent buildings at 1555 and 1601 Petersen Avenue, the latter attached to Westgate.

The Westwood-Westgate site totals nearly 4 acres and last sold in 2003 for about $5.2 million, according to title service records. Westgate contains mostly one-bedroom apartments and offers memory and bedridden care, outpatient therapy and hospice services, according to its website and a 2019 report by the Cupertino Age-Friendly Task Force. Westwood’s service offerings include physical, occupational and speech therapies, outpatient rehab and round-the-clock nursing, according to its website.

San Diego-based Links purchased Westwood and Westgate for nearly $126,000 a bed from three limited liability companies co-managed by Frederick Stamm of Stamm Care Homes, an assisted living facility in Orinda, California, according to public records. Stamm and Links agreed in 2019 for the latter to lease and operate both facilities through 2034.

Those agreements included an option to purchase the premises, records show. Their new owner took out a $38.5 million loan from Forbright Bank to finance the acquisition, according to a deed of trust filed with the Santa Clara County Clerk-Recorder’s Office on Oct. 21.

It’s unclear what Westwood’s and Westgate’s occupancy rates and average rents were when they changed hands. Links co-founder Toby Tilford didn’t respond to emails seeking comment. Public information on the company is scarce, as it doesn’t have a website and doesn’t say on its LinkedIn page if it’s a for-profit or nonprofit organization.

Established in 2017, Links’ portfolio totals 14 assisted living, skilled nursing and post-acute care facilities in California, according to its LinkedIn page. The latter two provide care to people who aren’t ready to return home after a hospital stay.

Assisted living homes attached to a skilled nursing facility seldom trade in Silicon Valley, partly because there aren’t many of their kind in the region. The last time one changed hands in Santa Clara County was four years ago, according to CBRE data. In that deal, CareTrust REIT acquired the 122-unit Villas at Saratoga for roughly $11 million, or about $91,000 a unit.

Villas is 70 percent nursing care and the rest assisted living, while the Westwood-Westgate site is about 81 percent nursing care and 19 percent assisted living. The other 10 deals on CBRE’s list of nursing home sales in the county since 2015 consist of properties that either offer only assisted living units; a mix of assisted living, independent living and skilled nursing care; or only nursing care.

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