Assisted Living Feasibility Study in the Los Angeles-Long Beach-Anaheim, CA Metro Area

Large dollars, below-parity share

Assisted living without nursing care in Los Angeles-Long Beach-Anaheim is notable for its size more than its share. The area is 4 of 321 for the class nationally, with 119 loans approved from FY2017 to FY2026 for $164.0 million, yet the location quotient of 0.86x is below parity and care homes are only 18 of 39 among the metro's asset classes. A median loan of $1.0 million reaches 1.32x the class's national median, while the bulk of loans, the central half, start at $500,000 and end at $1.7 million.

Los Angeles and Orange counties

Los Angeles County provides 75 of the loans and Orange County 44. Loan Analytics withholds five values for this cell: the 7(a) count, the 504 count, the franchise share, the full cancellation rate and the charge-off rate. Thin counts are the reason, and a withheld figure is neither zero nor estimated. Yearly volume was steady, from 9 loans in FY2017 and FY2018 to 18 in FY2025, and FY2026 brought 11 loans for $27.9 million, the top dollar year of the series.

Holders

Commonwealth Business Bank is first among 7(a) holders at 10 loans and $16.0 million, then Wells Fargo Bank National Association (8 loans, $8.1 million), Bank of Hope 6 worth $12.0 million, Pinnacle Bank (CA) 6 worth $7.4 million and Celtic Bank Corporation 5 worth $6.9 million. Bank of Hope's average ticket is the highest of the five. These are holdings as SBA lists them today, and they say nothing about anyone's credit view of care homes.

The loss picture

Cancellation after approval is at least 11.1% for FY2017 to FY2024 approvals. No other loss figure is available for this cell, so a lender wanting charge-off context has to look to California and national pages.

Testing a Los Angeles-area care home

A sponsor has to show that the local need is real despite the sub-parity weight, by counting licensed beds near the site and estimating the households that can pay privately. Conversion or construction cost deserves testing against the $1.0 million median. Staffing, occupancy ramp and debt service should be tested with a slow lease-up. Because nursing is indexed separately, the study should state what care the home will provide; a project with nursing staff on site is covered by other class pages. The appraiser will test the income from the licensed beds. Counties are placed by the July 2023 areas.