Sanford Health is selling the portfolio of more than 40 affordable housing facilities it acquired through its 2019 merger with Evangelical Lutheran Good
California Commercial Investment Group, a Westlake Village, Calif.-based acquisition, asset management and development firm, has signed a letter of intent to buy the health system’s 42 facilities across 18 states. The deal will close on a rolling, location-by-location basis throughout 2021. The parties did not share the proposed price.
Not-for-profit Sanford disclosed in a recent financial statement that its affordable housing division, which includes 1,700 mostly U.S. Department of Housing and Urban Development-funded units, loses $1.8 million on operations annually, and selling them will erase $33.6 million worth of debt from its balance sheet. Sanford’s operating income jumped 88% year-overyear to $291 million in 2020. Revenue grew 7% year-over-year to $6.7 billion in 2020.