As Alan already noted this is an elder care facility and must be purchased with the understanding that the residents must be allowed to remain in the facility until the last tenancy expires. Because of the restriction and the fact that the home was originally listed at $1.6 million, the majority of buyers have not been interested in this property.
Until and unless a homebuyer can use this home as a personal residence and is not forced to obtain a business loan for the property, the home will remain a poor purchase for all but a select few looking to invest in an elder care facility.
In the meantime, the season is starting soon and there will be other homes available for purchase in the same area.
Allison James Estates and Homes
Buyer Rebates and Low Cost Listings for Sellers
It looks like you have been researching on line for answers for over 6 months now. Based on the questions it's safe to assume you have not chosen a buyers agent to assist you. It does't cost you anything to employ an agent to represent you and that person is just an email, text or phone call away from you to answer your questions. I do suggest you interview and have a consultation with a buyers agent. The reason is that when you do find the right home to buy you will have the knowledge and confidence that the person you have chosen knows you and your needs and wants, along with their skill and ability to achieve them.
All the best to you.
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
California tenant laws strictly protect a tenant's use and occupation of rental property--be it an elder care facility or a simple home rental--and prevent tenants from losing their current tenancies due to a change in ownership of the property. So whether an apartment building, an elder care facility, halfway home or single family rental, any lease currently existing on the property must be fulfilled by the new owner at the contracted rate. This doesn't prevent the new buyer from trying to "buyout" the leases of the current tenants, but unless the tenants are motivated to leave, there is little chance that such tactics would work.
If I recall correctly--because this is the part of Sunnyvale in which I tend to focus my practice--the negotiated tenancies were long term, so that if purchased, the buyer would be unable to easily convert this home from elder care to residential unit for several years.
If you are looking to purchase a thriving elder care facility with long term tenants, this is certainly a good choice. However, if you're hoping to purchase the property and convert it to a residential home, it can be done but only after the last lease for one of the tenants expires. This restriction applies to any home in California that is sold with a tenant lease on the property. Good luck!
Just curious: how can a seller stipulate how the buyer would use the property after purchase? Is it zoned only for business use? If yes, that would appear odd since other properties on the block are traditional SFHs?
If purchased with a business loan, how easily/quickly could one change for personal residence use? Not suggesting one would kick out tenants, but just trying to understand constraints. Thx.
"Born,raised, live and work right here in Sunnyvale"
Alex Greer Loan Officer NMLS #1056079 http://www.TheMortgageOutlet.com 408-352-5147 AGreer@TheMortgageOutlet.com