Senior Residential Facilities become focus of campus redevelopment, with new amenities, supporting community health programs in the Beach Cities
REDONDO BEACH, Calif. (March 20, 2026) — Beach Cities Health District (BCHD) and Sunrise Senior Living (Sunrise) have signed a Letter of Intent to pursue a ground lease for the redevelopment of the former South Bay Hospital site at 514 North Prospect Avenue in Redondo Beach.
BCHD started to look at redeveloping the former South Bay Hospital site to address seismic safety concerns and to create a long-term, stable source of revenue to support its free and low-cost health programs and services for the community.
The proposed project includes new residential care facilities for the elderly (RCFE), offering up to 217 units of memory care, assisted living and independent living, along with a range of community focused amenities, including publicly-accessible green space, a walking loop, wellness programming, a multi-purpose community room and more. Final project details will be determined as BCHD and Sunrise work toward finalizing the ground lease.
The process for BCHD’s Letter of Intent with Sunrise began last November, when the BCHD Board granted CEO Tom Bakaly the authority to negotiate with three developers, with the goal of having a signed letter within six months.
Last year, BCHD established an Advisory Working Group, comprised of residents, staff and a BCHD Board Member, to review submissions, and they narrowed the original field of 12 submissions to the three finalists. A subsequent round of review and financial analysis by the working group was completed earlier this month, and deemed the Sunrise proposal to now be the best fit with BCHD’s mission and the project’s guiding pillars of health, livability and community, while also being seen as the most likely plan to succeed.
“The Advisory Working Group has spent many, many hours going through proposals and making sure they align with our criteria,” said Bakaly. “They have worked hard to ensure the plan addresses the seismic issues with the current building, while being prepared to meet our community’s health needs well into the future.”
BCHD’s plans for a ground lease model will keep the land publicly owned while partnering with Sunrise to bring a RCFE and other health-related services to its campus. This proven approach has successfully generated revenue for BCHD programs and services for 55 years, creating sustainable funding to support health and wellness programs and ensuring the campus continues to serve the community for years to come.
“Sunrise Senior Living is proud to have partnered with Beach Cities Health District for more than 25 years, and we’re excited to continue building on that strong foundation,” said Philip Kroskin, Head of Real Estate for Sunrise. “Together, we share a commitment to supporting healthier, more connected communities, and we look forward to expanding that impact through a thoughtfully designed environment that supports senior wellness and engagement.”
Bakaly executed the non-binding Letter of Intent (LOI) with Sunrise on March 18. That LOI has an expiration date of May 29 of this year. The health district is preparing an addendum to the project’s Environmental Impact Report (EIR) that summarizes the revised project in the context of the plan that was evaluated in the EIR, which was completed and approved in 2021. Since this revised project is smaller and shorter in duration than what was evaluated in the EIR, new or more severe environmental impacts are not expected.
The Letter of Intent with Sunrise will be an informational item at the next BCHD Board of Directors meeting on Wednesday, March 25 at 6:30 p.m.
At its May meeting, the BCHD Board is expected to formally review the LOI and consider approving a land lease agreement with Sunrise. If the lease agreement is approved, BCHD will provide Silverado – which currently operates a memory care facility on BCHD’s campus – with one year’s notice to vacate the building. As a condition of that notice and consistent with Silverado’s current lease, there will be no lease payments paid by Silverado to BCHD for one year. This transition period is included in the lease to ensure families would have sufficient time to relocate should the lease end.
“We are proud of our partnership with Silverado over the 20 years and will continue to collaborate closely during this transition,” said Bakaly. “Residents and their families will have a year to explore their options, and our Community Services team will be available to support Silverado residents through the process and serve as a resource for families.”
BCHD Campus Redevelopment Features:
- The proposal reflects responsiveness to community feedback related to building height, density, open space and accessibility, while presenting a cohesive campus vision that connects new development with existing BCHD facilities and programs to enhance overall community benefit and accessibility.
- Sunrise has extensive experience as both a developer and operator of senior communities and is a partner with BCHD on Sunrise Hermosa Beach. Sunrise is also working on a new facility in Manhattan Beach and has an established community presence and local experience.
