After more than three decades of ownership and operation, a respected family-run Residential Care Facility for the Elderly (RCFE) in San Mateo County has taken the first step toward transitioning its legacy asset to new ownership. Located in the southern portion of Silicon Valley, the property represents a rare opportunity in one of California’s most supply-constrained and high-demand senior housing markets.

The operator, who has successfully managed the community for 35 years, reached out to Matthew Hustad of The Hustad Group to begin the process of preparing both the real estate and operating business for sale. The asset—valued at approximately $15 million—includes a 70-bed assisted living facility with a dedicated 30-bed Memory Care unit, all operating on a private-pay model. Monthly resident rates range from $8,000 to $12,000, reflecting both the quality of care and the affluence of the surrounding Silicon Valley demographic.

Understanding the Process from Start to Finish

One of the seller’s primary objectives was gaining a clear understanding of what the sales process would look like from beginning to end. This included everything from valuation and listing strategy to buyer qualification, due diligence, and closing.

Matthew Hustad provided a comprehensive overview of the full lifecycle of a transaction, ensuring the seller had visibility into each step. This included:

• Preparing the property and financials for market
• Developing a targeted marketing strategy to qualified buyers
• Navigating the regulatory and licensing transfer process through the California Department of Social Services
• Coordinating with legal, escrow, and licensing professionals
• Structuring offers and negotiating deal terms

Given the highly regulated nature of RCFE operations, particular attention was paid to the licensing component—an area that often creates uncertainty for first-time sellers. Hustad’s expertise helped clarify how ownership transitions are handled and what buyers and sellers should expect during the approval process.

Strategic Marketing for a Unique Asset

With limited inventory of larger RCFE and Memory Care facilities in San Mateo County, positioning the asset correctly in the marketplace is critical. The Hustad Group outlined a tailored marketing approach designed to reach both regional operators and institutional buyers seeking stabilized, private-pay senior housing investments.

The property’s strong operational history, premium rate structure, and established reputation make it especially attractive to buyers looking for turnkey opportunities in high-barrier-to-entry markets.

Addressing Capital Gains and 1031 Exchange Options

Beyond the operational and transactional aspects, the seller expressed significant concern about capital gains tax exposure. Having held the asset for decades, the potential tax implications are substantial.

Hustad advised the seller to consult directly with her CPA while also providing strategic insight into available options, including:

• Traditional 1031 exchange into like-kind real estate
• Replacement investment property strategies
• Delaware Statutory Trust (DST) structures as a passive investment alternative

The introduction of Delaware Statutory Trust options was particularly impactful, as it opened the door to diversified, hands-off real estate ownership without the burden of active management. This gave the seller flexibility and peace of mind, knowing she would not be forced into a traditional acquisition if it didn’t align with her long-term goals.

Building Confidence Through Expertise

By addressing not only the listing and sale process but also the regulatory, legal, and financial considerations, The Hustad Group was able to provide a holistic advisory approach. This comprehensive guidance allowed the seller to move forward with clarity and confidence, knowing she is supported by a specialist in California’s assisted living and RCFE marketplace.

As the process moves into the preparation and pre-marketing phase, this Silicon Valley asset is expected to draw significant interest from qualified buyers seeking scale, stability, and location-driven value in the senior housing sector.

If you are an owner or operator of an Assisted Living, Memory Care, or RCFE property considering a sale—whether now or in the next 12–36 months—early planning is critical to maximizing value and ensuring a smooth transition.

The Hustad Group specializes in representing larger RCFE and senior housing assets throughout California, with a strong presence across the Bay Area, Central Coast, and Southern California markets including:

• San Mateo County
• Santa Clara County
• Alameda County
• Contra Costa County
• Santa Cruz County
• Monterey County
• San Luis Obispo County
• Santa Barbara County
• Ventura County
• Los Angeles County
• Orange County
• San Diego County

From valuation and pre-market positioning to buyer sourcing, licensing navigation, and closing, you deserve a strategic partner who understands both the real estate and operational complexities of senior housing.

To confidentially discuss your property and explore your options, visit:
www.matthewhustad.com
www.rcfeconsultingservices.com

Or connect directly to begin a customized exit strategy tailored to your goals.