Links Healthcare Group went from operator to owner of a skilled nursing facility connected to an assisted living facility in San Jose, paying $40 million to acquire more than 300 beds in a type of asset trading rarely seen in Silicon Valley.
The connected properties house the 258-bed Westwood Post-Acute Skilled Nursing Center, the type of facility often used for post-hospital care, and the 60-bed Westgate Villa assisted living community. Westwood spans two adjacent buildings at 1555 and 1601 Petersen Avenue, the latter being attached to Westgate.
The Westwood-Westgate site totals nearly 4 acres and was last sold in 2003 for about $5.2 million, according to title service records. Westgate contains mostly one-bedroom apartments and offers memory and bed rest care, outpatient therapy and palliative care services, according to its website and a 2019 report from the Cupertino Age-Friendly Task Force. Westwood’s service offerings include physical, occupational and speech therapy, outpatient rehabilitation and 24-hour nursing care, according to its website.
San Diego-based Links purchased Westwood and Westgate for nearly $126,000 per bed from three limited liability companies co-managed by Frederick Stamm of Stamm Care Homes, an assisted living facility in Orinda, Calif., according to public records. Stamm and Links agreed in 2019 that the latter leases and operates both facilities until 2034.
These agreements included an option to purchase the premises, according to the records. Their new owner took out a $38.5 million loan from Forbright Bank to fund the acquisition, according to a deed of trust filed with the Santa Clara County Clerk’s Office on Oct. 21.
It is unclear what the average occupancy rates and rents of Westwood and Westgate were when they changed hands. Links co-founder Toby Tilford did not respond to emails seeking comment. Public information about the company is sparse, as it does not have a website and does not indicate on its LinkedIn page whether it is a for-profit or non-profit organization.
Established in 2017, Links’ portfolio has 14 assisted living, skilled nursing and post-acute care facilities in California, according to its LinkedIn page. The latter two provide care for people who are not ready to return home after a hospital stay.
Assisted living facilities attached to a skilled nursing facility rarely trade in Silicon Valley, in part because there aren’t many in the area. The last time hands changed in Santa Clara County was four years ago, according to CBRE data. As part of the deal, CareTrust REIT acquired the 122 Saratoga villas for approximately $11 million, or about $91,000 per unit.
Villas is 70% nursing and the rest assisted living, while the Westwood-Westgate site is approximately 81% nursing and 19% assisted living. The other 10 deals on CBRE’s list of retirement home sales in the county since 2015 consist of properties that offer only assisted living units; a mix of assisted living, independent living and skilled nursing; or just nursing.