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Laguna Niguel Senior Housing Trades for $116M

Steadfast JV sells 201-unit Crestavilla

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A recently built senior housing property in Laguna Niguel has traded hands for nearly $116 million, in one of the top commercial property sales the city has ever seen.

A joint venture between Irvine-based Steadfast Development and San Francisco-based Fremont Realty Capital sold the 201-unit Crestavilla property for about $575,000 per room, records indicate.

The project started construction in 2016 and opened in 2018. It reportedly cost about $70 million to build.

The buyer is a venture between affiliates of Carlsbad’s Kisco Senior Living and Chicago-based Harrison Street, who acquired the property on behalf on an undisclosed institutional investor.

Kisco will manage the property, located near the intersection of Niguel Road and Crown Valley Parkway.

The deal is the second-priciest reported property sale in Laguna Niguel in the past decade, according to records from real estate market tracker CoStar Group Inc.

The city’s largest sale over that time was the 299-unit Vilara apartment complex, near the intersection of Crown Valley Road and the San Diego (5) Freeway. Built in 2019, it sold last year for $162 million, or about $542,000 per unit, according to CoStar.

 

City Revitalization

Crestavilla is less than a mile from the planned Laguna Niguel City Center, a mixed-use project that will ultimately add 275 apartments and 75,000 square feet of commercial and civic uses.

Cushman & Wakefield represented the seller of Crestavilla and arranged an $86.7 million acquisition loan from Fifth Third Bank on behalf of the buyer. Cushman’s Rick Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker and Bailey Nygard handled the transaction.

“We are very pleased to deliver a strong execution for the seller on one of the most exceptional and upscale senior housing assets in the country,” Rosenzweig said in a statement.

 

Steadfast Assets

Crestavilla is located on 4.6 acres of an 11.5-acre hillside property, and includes studio, one- and two-bedroom floorplans for independent living, assisted living and memory care residences.

Amenities at the upscale property include a 12,000-square-foot rooftop terrace, organic greenhouse, wellness programming, five dining venues, two fitness centers and a golf practice green.

WHA Inc. designed the 211,387-square-foot property.

The project won initial entitlements in 2012, but pushback from residents prompted the developers to change the plan to include fewer rooms and lower building heights. The new plan was approved in 2013.

Steadfast now counts three Orange County multifamily assets totaling 238 units. The projects include senior housing property Coventry Heights in Westminster, as well as Orange Tree in Garden Grove and Flanders Pointe in Tustin.

Crestavilla, previously an Atria Senior Living property, will now serve as Kisco’s first Signature Community, an upscale brand launched at the start of the month. Kisco is developing its second Signature Community in Maryland, with The Carnegie at Washingtonian Center slated to open in 2024.

The Laguna Hill property is the fifth OC asset for Kisco, which also operates senior living communities in Anaheim, Orange, Rancho Santa Margarita and Irvine. It counts 21 communities total in six states.

 

Top Deals

The sale of Crestavilla is the priciest senior living transaction to occur in OC in several years (see story, page 10), and is the fifth priciest among multifamily sales in OC year-to-date.

It’s one of several new upscale rental properties to be built in Laguna Niguel in recent years.

The five-story Vilara complex, along Getty Drive, was built and sold by Scottsdale, Ariz.-based Alliance Residential Co.

Virtú Investments, a Larkspur-based multifamily real estate investment firm focused on properties in the Western U.S., was the buyer in that 2021 deal for $162 million.

Other new rental complexes in the area include the nearby Broadstone Cavora complex, a nearly 350-unit project also built by Alliance, which has a local office in Irvine and numerous other multifamily development projects elsewhere in OC.

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