SOLD: Vacant Skilled Nursing Facility
LYNWOOD, CA — October 24, 2017 —The Investment Services Group (ISG) of Lee & Associates, the largest broker-owned commercial real estate firm in North America, has negotiated a $2,100,000 sale of the 29,060 - square foot, vacant skilled nursing facility located at 3598 Martin Luther King Jr Blvd. in Lynwood, California.
Matthew Sullivan, of Lee & Associates - Investment Services Group exclusively represented the seller on this transaction, Robert Yang, MD. This facility was included in a receivership portfolio currently in litigation with the Securities and Exchange Commission.
According to the SEC’s complaint filed in U.S. District Court for the Central District of California, Robert Yang, MD, Claudia Kano, and their affiliated “Suncor” entities have raised approximately $20 million from 40 investors located in China for the development of three “sub-acute nursing care facilities” located in Fontana, Hesperia, and Lynwood, California. But the SEC alleges that Yang and Kano diverted more than $10 million for personal and other uses and jeopardized investors’ prospects for U.S. residency under the terms of the EB-5 program. Among other things, the SEC alleges that Yang and Kano, contrary to representations made to investors, used investor funds for Yang’s medical practice, to pay Yang’s personal taxes, and to purchase real estate unrelated to the EB-5 projects.
Built in 1961, the Lynwood property located at 3598 Martin Luther King Jr Blvd. features 1.05 acres lot, and 29,060 net rentable square feet. Although it was remodeled in 2008, the property is currently in disrepair. It features spacious private rooms, which can potentially accommodate up to 120 residents. It has space for a commercial kitchen, two dining halls, fire sprinkler system, and A/C system. The property also potentially offers ADA restrooms, laundry facility, private offices with private bathrooms, activity rooms, staff lounge, several landscaped courtyards, 16 parking spaces for staff/visitors, and two conference rooms.
Lynwood is located near South Gate and Compton in the southern portion of the Los Angeles Basin. Both the 105 and 710 Freeways service Lynwood, connecting the city to greater Los Angeles. This property is located within close proximity to St. Francis Medical Center, the only comprehensive non-profit healthcare institution serving Southeast Los Angeles.
“This property has a lot of potential being just a few blocks from St. Francis Medical Center. It was a very difficult property to sell given its current condition, lacking adequate plumbing and electrical. Despite that, we were able to get multiple offers, and secured potential out bidders,” said Sullivan.
The buyer of the property is in the retail manufacturing business and plans to re-purpose the property for his business use, closing escrow on 10/18/17.