Nick Stahler and Austin Diamond of the Knapp-Stahler Group at Marcus & Millichap facilitated a lease-with-purchase-option transaction for a dually certified, 120-bed skilled nursing facility in the Dallas-Fort Worth area. The pair was also able to negotiate $500,000 of key money from the incoming operator for the landlord, a rarity in Texas deals. That was possible because at 10 years of age, the facility was performing well and represented decent lease coverage on day one. The SNF was 74% occupied and operated at a strong 12% margin with a 4% management fee.
Stahler and Diamond obtained several offers culminating in a full asking lease rate, purchase option that starts in year three of the lease, and the key money. Ultimately, the new operator was selected due to its regional presence in the state as well as its national coverage as a publicly traded operator. The owner/landlord is a private, regional owner/operator in the Dallas-Fort Worth area.
