After purchasing four senior care campuses in a large portfolio deal, a seniors housing owner/operator turned to Marcus & Millichap to find new tenants for the skilled nursing portions of each newly acquired campus. Each building was losing close to $1 million annually and had struggled with occupancy and expenses.
While the portfolio purchase was in escrow, the buyer, which solely focused on seniors housing operations, engaged Rob Reis and Nick Stahler of Marcus & Millichap to create a market for each nursing home portion. Despite the negative cash flow, M&M targeted aggressive lease rates and sourced three separate tenants, all regional SNF operators based in California. Each of the transactions received multiple offers in a competitive bidding process, and the leases closed at the agreed-upon rates and terms.
