The Story
Decker Healthcare Group secures a tenant on behalf of a formerly licensed 57-unit assisted living community located in San Jose, California. Originally constructed in the late 1990s, the property features large units with all private bathrooms.
The Cornerstone Evangelical Baptist Church in San Francisco, engaged Decker Healthcare Group to secure a long-term lease on the community after a former tenant abandoned the property. Break-ins followed, the interior was stripped, the utility company had shut down power to the building and the City of San Jose placed the property on its dilapidated building program. The asset required an estimated $10MM+ in capital improvements to rehabilitate.
Prior to engaging Decker, the church explored converting the property to low-income housing and evaluated a full demolition and ground lease with a new developer; neither option proved economically viable.
Decker Healthcare Group identified a Recuperative Care Provider, as a tenant with awarded public funds from Santa Clara County actively seeking an appropriate project to address a strong regional need for recuperative care services. After extensive negotiations involving construction cost thresholds, commencement timelines, and regulatory approvals, the parties executed a 50-year lease.
Additional funding sources for the rehab were secured through multiple public and private channels including the Santa Clara County Family Health Plan, Anthem’s Housing and Homeless Incentive Program, and the state's Medi-Cal managed care plans. These funds collectively totaled more than $5M in committed funds and allowing the economics to work for all parties.
“This is an incredible example of how both the public and private sector can work together to fulfill needs for these services in our community,” noted Managing Director Bill Janis. “It’s also a great example of an older assisted living building offering chances at new life.”
