Exploring the Legacy of Sherman & Roylance: A Comprehensive Overview

Sherman & Roylance, headquartered in Rancho Santa Margarita, California, has quickly emerged as one of the nation’s most influential boutique brokerage firms in the senior housing arena. Founded in 2018 by industry veterans John Sherman and Shep Roylance, the company blends deep operational insight with sophisticated financial acumen to facilitate transactions that strengthen communities and unlock long-term value for investors. With more than $5.5 billion in closed sales across skilled nursing, assisted living, memory care, and independent living properties, the firm’s reputation for discretion and results-oriented strategy continues to attract a highly qualified network of buyers, sellers, and lenders.

From Vision to Reality: The Founding Story

John Sherman and Shep Roylance first crossed paths while negotiating opposite sides of a skilled nursing facility sale. Both men recognized that the senior housing sector lacked specialized brokerage teams capable of pairing financial engineering with genuine empathy for residents and caregivers. That realization ultimately led them to launch Sherman & Roylance in 2018, deliberately limiting the firm’s focus to post-acute and long-term care real estate. By concentrating on a single asset class, the founders could nurture relationships with operators, regional health systems, and private equity groups that shared their commitment to quality care. Today, that founding vision shapes every assignment, from boutique residential care home dispositions to nine-figure portfolio acquisitions spanning several states. Clients routinely cite the founders’ hands-on approach, rapid response times, and refusal to compromise on confidentiality as decisive factors in choosing the firm for mission-critical mandates.

Rather than rely on mass marketing or public listings, Sherman & Roylance runs an invitation-only platform that exposes each opportunity to a handpicked pool of operators and capital partners. The approach protects census levels, staff morale, and competitive positioning for sellers while giving buyers access to deals that rarely appear on mainstream listing services. This exclusive model not only fosters a sense of community among participants but also encourages a collaborative environment where innovative solutions can flourish. By prioritizing quality over quantity, Sherman & Roylance has cultivated a reputation for being the go-to resource for nuanced transactions that require a deep understanding of the complexities involved in senior care.

The firm’s commitment to education and advocacy in the senior housing sector is equally noteworthy. John and Shep frequently host workshops and seminars aimed at informing stakeholders about the evolving landscape of healthcare regulations, financing options, and operational best practices. These events not only empower operators and investors but also reinforce the firm’s role as a thought leader in the industry. By sharing insights and fostering dialogue, Sherman & Roylance helps to elevate the standards of care and operational excellence across the board, ensuring that the needs of residents and caregivers remain at the forefront of every conversation.

The Power of Specialization: Serving the Full Continuum of Senior Care

The senior housing universe encompasses multiple property types, each governed by distinct reimbursement models, regulatory frameworks, and operational challenges. Sherman & Roylance maintains dedicated underwriting templates for skilled nursing, assisted living, memory care, and independent living assets, enabling the team to overlay real-time labor, census, and payor-mix trends onto property-specific financials. This meticulous segmentation matters because a 100-bed skilled nursing facility valued on EBITDA multiples bears little resemblance to a 60-unit memory care community priced on stabilized NOI. Clients benefit from valuation opinions that reflect the nuances of licensure, acuity, and local market dynamics instead of one-size-fits-all rules of thumb.

Furthermore, the landscape of senior care is continually evolving, influenced by demographic shifts and changing consumer preferences. As the population ages, there is an increasing demand for specialized care options that cater to varying levels of health and independence. For instance, the rise of memory care communities reflects a growing recognition of the unique needs of individuals with Alzheimer’s and other forms of dementia. These facilities not only require specialized training for staff but also necessitate specific design features that promote safety and cognitive engagement, further complicating their valuation and operational considerations.

Moreover, the financial implications of these specialized services extend beyond mere property valuation. Investors must also consider the potential for reimbursement changes driven by policy reforms and insurance models. As value-based care becomes more prevalent, facilities that can demonstrate quality outcomes and efficient care delivery may find themselves at a competitive advantage. This shift underscores the importance of understanding the intricacies of each care type, as well as the broader economic and regulatory environment, to make informed investment decisions that align with the evolving needs of the senior population.

Core Service Lines That Drive Value

Sherman & Roylance divides its advisory practice into four primary service lines: Valuation, Buyer & Seller Representation, Healthcare Bankruptcy Advisory, and Senior Housing Development consulting. The valuation team harnesses proprietary databases comprising thousands of closed transactions to benchmark pricing, cost of capital, and operational metrics. When sellers request a broker opinion of value, they receive a data-rich dossier that includes sensitivity analyses for census fluctuations, labor inflation, and exit cap rates. For buyers, the same analytical rigor translates into well-supported acquisition models, complete with pro-forma debt structures and stress-test scenarios.

Distressed situations require a different playbook. The firm’s Healthcare Bankruptcy Advisory group collaborates with restructuring attorneys and court-appointed receivers to fashion solutions that preserve resident care while maximizing creditor recoveries. Meanwhile, its Development advisory arm guides clients through site selection, entitlement, and capital stack formation for ground-up projects designed to meet the incoming wave of Baby Boomer demand.

Recent Closings That Illustrate Execution Excellence

In March 2025, the brokerage represented an institutional buyer in the $10 million purchase of a three-facility portfolio in Northern California totaling 205 units and 242 licensed beds. The off-market deal closed within sixty days, and the buyer secured bridge-to-HUD financing at sub-eight-percent interest—terms rarely seen for portfolios of that size. The assignment required coordinating environmental studies, union negotiations, and a change-of-ownership filing with the California Department of Public Health, all under a strict non-disclosure agreement that prevented staff and families from learning of the sale until approvals were in hand.

Earlier, in October 2024, Sherman & Roylance structured a complex leasehold transfer for a 144-bed skilled nursing center in Santa Cruz. Rather than an outright sale, the parties agreed to a long-term triple-net lease supported by multimillion-dollar key money and a graduated per-bed rental schedule tied to local Medicaid rate increases. The arrangement allowed the outgoing operator to redeploy capital while ensuring the incoming tenant had enough runway to implement quality-of-care initiatives.

Shaping a National Marketplace

Although headquartered in California, Sherman & Roylance executes mandates nationwide, drawing on a database that tracks more than 18,000 senior housing facilities across the United States. Internal estimates show the firm has been involved in approximately three percent of all skilled nursing transfers in the West over the past five years. Participation in industry conferences such as the National Investment Center Spring Conference keeps team members current on trends like integrated care and behavioral health while positioning them to share transaction insights with policy makers and lenders. By continually publishing market intelligence—average per-bed pricing, cap-rate spreads, and census forecasts—the firm influences underwriting standards adopted by regional banks and debt funds.

A Culture Built on Discretion

The senior housing industry is uniquely sensitive to rumors. News of a pending sale can unsettle families, disrupt referral pipelines, and trigger costly staff turnover. Sherman & Roylance mitigates these risks through an invitation-only marketing process that exposes each listing to a curated roster of qualified investors. Non-disclosure agreements precede every data request, virtual tour, or campus visit. Deal documents are watermarked and tracked, and phone calls are held in secure conference lines. This culture of discretion has earned the firm repeat engagements from hospital systems intent on divesting skilled nursing wings without generating negative headlines.

Meet the Leadership and Advisory Team

Co-founder Shep Roylance brings more than two decades of healthcare transactional expertise, having spearheaded more than 400 facility transfers during his career. His background in operations informs his ability to translate clinical performance into financial value, a skill set that resonates with lenders and equity partners. John Sherman complements that experience with an extensive brokerage pedigree focused on high-touch client service and disciplined process management. Together, the duo leads a tight-knit group of analysts, licensed agents, and former administrators, many of whom hold degrees in finance, gerontology, or public health.

Positioning for the Next Wave of Demand

The U.S. Census Bureau projects that adults aged 65 and older will outnumber children by 2034, a demographic milestone that underscores the urgency of expanding senior housing capacity. Sherman & Roylance is preparing by investing in data analytics platforms that flag underutilized medical office sites, opportunity-zone parcels, and adaptive-reuse candidates suitable for modern assisted living prototypes. In parallel, the firm is exploring ESG-aligned financing structures that reward operators for energy-efficient retrofits and enhanced workforce benefits. By marrying sophisticated capital markets tools with mission-driven development strategies, the brokerage aims to guide investors toward projects that deliver both competitive returns and measurable social impact.

A Lasting Legacy of Expertise and Integrity

In a field where real estate, healthcare, and human compassion intersect, Sherman & Roylance distinguishes itself by mastering each dimension. The firm’s track record—billions in transaction volume, headline-worthy deals closed under strict confidentiality, and a loyal clientele that spans regional operators to institutional funds—speaks to a culture dedicated to thoughtful execution and leadership. As the senior housing landscape grows more complex, stakeholders will continue turning to advisors capable of navigating both spreadsheets and survey reports with equal fluency. Sherman & Roylance’s legacy thus far suggests it is uniquely positioned to meet that challenge.