Harbor Heights Case Study

Resident Suite before renovation Resident Suite during renovation Resident Suite after renovation Project Analysis Formerly a 126-room psyche facility with 199 licensed beds, Harbor Heights became a senior living facility around 2000. Originally a court appointed receiver, LK assumed direct management of Harbor Heights in June of 2020 and immediately began planning for a complete repositioning of the business. This included a full remodel of the property and a complete restructuring of the business model. The Harbor Heights facility was well-located in the center of Anaheim with easy access to major highways and neighborhoods with a significant aging population. Unfortunately, years of neglect resulted in a run-down and dated facility. There were only 59 residents occupied 37 rooms. 90% of existing residents paid for room, board, and care with SSI income only. An average daily rate of only $37.00 resulted in negative net operating income. Construction Upgrades The property needed more than just a facelift – it needed to be completely reimagined and renovated. From the bottom – up, everything in the property would be touched. The newly renovated Harbor Heights would welcome senior residents to a new level of retirement living in Anaheim. The building would become a community – a safe and welcoming environment that offered residents a spacious home bathed in natural light with premium amenities and furnishings. Residents and their families would step into a new lobby and spacious open concept living areas. All resident suites would have renovated bathrooms, new wood and tiled flooring, and new décor with upscale finishes and many of the Assisted Living rooms would have patios or balconies overlooking Harbor Heights’ stunning new garden courtyard. Improvements include: • Full exterior facelift • A new lobby and spacious open concept living areas • All resident suites have renovated bathrooms, new wood, and tiled flooring • All new décor with upscale finishes • New patios or balconies overlooking the Harbor Heights’ stunning garden courtyard • Reimagined public spaces with contemporary coastal inspired color schemes, better room flow, safe and quiet, well-lit corridors, and extensive outdoor recreational spaces • Two cloistered courtyard and landscaped entertainment areas including a separate outdoor secure Memory Care area with garden paths and raised resident gardens • Modernized and upgraded resident rooms with ample closet space, wider door openings, safe step in showers with grab bars (safer for the residents and reduces care related labor), crown molding and modern color schemes. • Energy efficient upgrades including new LED lighting, PTAC units, lo-flow hi-rise toilets, low water use landscape drip systems.