Case Study

Bluestem Center

Bluestem Center

124 Elton Hills Lane, Rochester, MN

  • Property Type: Healthcare
  • Size: 11,533 SF
  • Date Closed: 02/16/2022


  • 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


  • 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


  • 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