Sherman & Roylance is pleased to announce the successful leasehold transaction for a 144-bed skilled nursing facility (SNF) in Santa Cruz, California. This transaction marks a significant step for both the landlord, seeking to diversify their portfolio, and the ambitious new operator, expanding their footprint in the California market.

The facility, originally constructed between 1967 and 1970, occupies a substantial 2.2-acre parcel and currently operates at 70% occupancy. Despite its history and challenges, the SNF's potential attracted interest from several potential tenants. Sherman & Roylance's expertise and dedication were instrumental in securing the ideal match.

The new lessee, a dynamic duo of experienced skilled nursing operators and businessman, formed a new operating company to acquire this facility. With their combined knowledge and business acumen, they are poised to grow their portfolio throughout California and the West Coast.

The leasehold transaction was structured as a long-term NNN lease with key money and a graduated market per-bed lease rate. It closed successfully after the lessee obtained the necessary Change of Ownership (CHOW) approval from the California Department of Public Health (CDPH).

Sherman & Roylance played a pivotal role in facilitating this complex transaction. Their deep understanding of the skilled nursing market, combined with their extensive experience in leasehold transactions, ensured a smooth and successful outcome. Shep Roylance and John Sherman's knowledge of the recent changes to SNF closing and CHOW requirements was invaluable in expediting the process.

About Sherman & Roylance

Sherman & Roylance is a leading boutique real estate investment firm specializing in skilled nursing and senior housing facilities. With a proven track record and a deep understanding of the senior care market, they provide comprehensive transaction advisory services for buyers and sellers nationwide.

For further information, please contact:

Shep Roylance
Founder
(818) 515-0530
Shep@SRSeniorLiving.com

John Sherman
Founder
(949) 742-8375
JSherman@SRSeniorLiving.com