Case Study
Bluestem Center
Bluestem Center
124 Elton Hills Lane, Rochester, MN
- Property Type: Healthcare
- Size: 11,533 SF
- Date Closed: 02/16/2022
Challenges
- Quantum was working with a first-time seller and we had to educate them on the benefits of a structured, sale-leaseback transaction
- The seller was a new operator in the market with only 3 locations and pre-growth revenue; credit challenge
- Ownership had extensive expansion plans but lacked the equity to grow
- The seller had a pipeline of acquisitions lined up but didn’t have the cash to close on them
Solutions
- Quantum cleared the market to find a sophisticated buyer who understood the intricacies of the behavioral health world and its credit
- Educated numerous buyers on the terms of the sale-leaseback
- Sold through the tenant’s low store count and sold the story on the future growth of the operator along with the growing need for behavioral health services in the market
Results
- Quantum found a buyer who was willing to acquire not just one, but two properties from our client allowing him to free up capital that was previously deployed up in his real estate
- After clearing the market, we were able to find a JV equity partner who wanted to fund the expansion of our client’s footprint across the Midwest
- Successfully found a partner who is exclusively a real estate partner and allowed our client to remain in complete control of the operational side of the business