Just Closed: Sherman & Roylance Guides Operator From Lease to Ownership in $8.25M Assisted Living & Memory Care Acquisition

Sherman & Roylance is proud to announce the $8.25 million sale of a 46-unit, 65-bed assisted living and memory care community in Monterey, CA. The closing caps a three-year engagement in which S&R placed a new operator in a struggling building, guided it to stability, and then helped it obtain financing so the operator could exercise its option to buy.

This deal was years in the making, and S&R was there at every step, from the first conversation to the closing table.

Transaction Highlights

Property type	Assisted living and memory care
Size	46 units, 65 licensed beds
Location	Monterey, CA
Purchase price	$8.25 million (about $179,000 per unit)
Structure	Lease-to-purchase, closed with bank financing
S&R role	Operator placement, lease-to-purchase structuring, purchase option, capital sourcing. S&R led the capital sourcing effort, preparing a comprehensive investment deck and detailed financial analysis to present the opportunity to lenders.

From Distressed to Stabilized: How the Deal Came Together

A facility at risk

When S&R first got involved in 2023, the previous owner was on the verge of having the facility's license revoked. Residents, staff and the owner's investment were all at risk. A conventional sale was not a realistic option for a building in that condition.

The right operator, under the right structure

S&R identified a qualified operator and placed them in the building under a lease-to-purchase agreement. The structure let the operator take over day-to-day care right away. It also gave them a clear path to ownership once the building was stabilized with seasoned financials.

Stabilizing operations

Over the following years, the operator did the hard work of turning the community around. They brought the building back to stable operations, increased its licensed capacity, and secured coveted ALW, CalAIM and VA contracts.

Exercising the option and securing financing

Once the building stabilized, S&R guided the operator through exercising its purchase option. S&R stayed closely involved through financing, connecting the buyer with a lender able to underwrite the deal and carrying it through to closing.

A clean exit for the seller

That financing is what allowed the seller to exit the property at the purchase price they wanted. A building once facing license revocation closed at $8.25 million.

Start to Finish

Most brokerage engagements begin with a listing and end at closing. This one began with a building in crisis. S&R stayed involved through every phase: sourcing the operator, structuring the lease-to-purchase, guiding the option exercise, capital sourcing, and closing the sale.

The result worked for everyone. The seller got the price they wanted, the operator became the owner, and residents are thriving.

“Not every deal is a straight sale. Here, the right answer was to put a strong operator in place first and build toward ownership. We’re proud to have seen it through from the first conversation to the closing table.”

Shep Roylance, Founder, Sherman & Roylance

Shep Roylance and John Sherman of Sherman & Roylance handled the transaction.

Facing a Difficult Situation With Your Community?

Whether you own a building that needs a turnaround, are an operator looking for a path to ownership, or are weighing a sale, Sherman & Roylance can help you find the right structure. Contact our team at (949) 620-6585 or SR-HQ@SRSeniorLiving.com, or visit srseniorliving.com to start a confidential conversation.