605 Orchard Ave - Orchard Street Senior Living 2.87 Acres of Commercial Land Offered at $6,900,000 in Arroyo Grande, CA 93420

605 Orchard Street Senior Living | Arroyo Grande, CA
Prime Shovel-Ready Assisted Living & Memory Care Development Opportunity
Camacho Commercial is proud to present Orchard Street Senior Living, a fully entitled and shovel-ready development opportunity in Arroyo Grande, California. This ±2.87-acre parcel has been meticulously planned and approved for a 98-unit, 114-bed Assisted Living and Memory Care community. The project combines a strong Central Coast location, completed entitlements, and institutional-scale design, making it an attractive acquisition for senior housing developers, operators, and capital partners.
Location Highlights:
- Address: 605 Orchard Street, Arroyo Grande, CA 93420
- Submarket: Central Coast / San Luis Obispo County
- Freeway Access: Immediate access to US Highway 101
- Nearby Amenities: Minutes from downtown Arroyo Grande, coastal communities, dining, and retail
- Healthcare Proximity: Adjacent to Arroyo Grande Community Hospital and within 20 minutes of French Hospital Medical Center (SLO)
- Arroyo Grande is a sought-after Central Coast community known for its desirable climate, strong income demographics, and appeal to retirees. The area has a growing senior population and limited supply of modern, purpose-built assisted living and memory care options, creating a favorable environment for absorption and long-term success.
Project Overview:
- Total Site Area: ±2.87 acres
- Total Building Area: ±93,513 SF
- Design: 2-story, “donut-style” courtyard layout promoting resident wellness and operational efficiency
- Unit Mix (98 units / 114 beds): 31 Assisted Living Studios (387 SF), 41 Assisted Living 1BR/1BA (626 SF), 6 Assisted Living 2BR/1BA (930 SF), 10 Memory Care Private (387 SF), 10 Memory Care Shared (626 SF)
- Amenities: Courtyards, gardens, dining hall, bistro, theater, lounges, BBQ, activity spaces, and dedicated memory care gardens
Entitlement Status: The property is fully entitled and shovel-ready, a rare advantage in California’s development climate.
All major approvals are complete:
- Conditional Use Permit (CUP): Approved by the City of Arroyo Grande
- CEQA Review: Mitigated Negative Declaration adopted
- Traffic Studies & City Reviews: Completed
Architectural & Site Plans: Approved and ready for execution (This eliminates years of entitlement risk and positions the buyer for near-term construction and delivery.)
Market & Demographics:
- Population within 5 miles: ~50,000
- Median Age: 47.5 years (10 years older than California average)
- Median Household Income: ±$87,000
- Senior Population Growth: By 2030, nearly 25% of the local population will be aged 65+
The Central Coast is experiencing in-migration of retirees from Southern California and the Bay Area. With few institutional-scale senior housing facilities nearby, Orchard Street is uniquely positioned to capture demand from an underserved market. Most current operators in the area are small board-and-care homes (6–32 beds), lacking the amenities and efficiency of modern purpose-built communities.
Financials & Deal Terms:
- Asking Price (Land + Entitlements): $6,900,000
- Total Development Cost (Projected): ±$48.5M
- Debt Assumptions: 70% LTC construction financing modeled at 7% interest-only
Exit Potential:
- Stabilized NOI: ±$4.5M
- Valuation: ±$63.3M at a 6% cap rate
This creates a compelling spread between total cost and stabilized value, with multiple exit strategies available.
Investment Highlights:
- Shovel-Ready Project – All CUP, CEQA, and plan approvals complete
- Institutional-Grade Scale – 98 units / 114 beds with dual AL/MC program
- Strategic Location – Central Coast positioning, near hospital, retail, and Hwy 101
- Underserved Market – Limited senior housing supply in San Luis Obispo County
- Flexible Exit Strategies – Build-to-core hold, forward sale, or JV with operator/capital partner
- Strong Demographics – Aging, affluent population with significant long-term demand drivers
Contact Information:
Camacho Commercial Real Estate Services
8439 W Sunset Blvd, Suite #150
West Hollywood, CA 90069
Office: (877) 777-4771
Gregory M. Camacho, Sr. – President/Principal
Gregory M. Camacho II – Associate