Harbor Heights Case Study

LK Asset Advisors Case Study Harbor Heights Senior Living Asset Type: Urban Senior Living Facility Project Budget: $3.95MM renovation budget LK Services Utilized: Receivership, Asset Mgmt., Property Mgmt., Property Renovation Key Benchmark for ROI: Average monthly Assisted Living rate increased 382% Summary In 2020, the Harbor Heights Senior Living facility was an aging 126-unit Adult Care facility in Central Anaheim, CA. The facility was underperforming due to mismanagement and neglect. There were 59 total residents occupying 37 of the available rooms. The remaining 89 rooms were not suitable for habitation. The room rate was $37.00 per day inclusive of all care with most of the funding coming from State subsidies. After a full assessment, LK determined that the facility, if renovated to market specifications and properly managed, would provide a high ROI to the owners. The results of the renovations, business enhancements and sales efforts have been impressive by every measure. The renovations on the 78,000 sq ft building were completed ahead of schedule and within budget. Construction took 10 months to complete, and a majority of the property upgrades were funded by a $2.75M Pace Loan obtained by LK. Post renovation, the facility’s rates have increased over 450% while net revenue increased by 423% (6/20 to 10/22). The marketing efforts have created long-term brand awareness in the marketplace and occupancy has increased more than 86%. Library before renovation Library during renovation Library after renovation