In one of the most significant healthcare real estate transactions Orange County has seen in years, a senior living and skilled nursing facility campus sold for $34.5 million, roughly $500,000 above guidance.
The sale of Katella Senior Living and Alamitos West Skilled Nursing Facility closed April 1, 2025. The combined campus in an infill pocket of Los Alamitos comprises a 150‑licensed‑bed skilled nursing facility and a 77‑unit assisted living and memory care community.
The deal has earned a 2026 CoStar Impact Award for sale of the year, as judged by real estate professionals familiar with the market.
While both properties were cash‑flow positive at the time of marketing, neither met traditional stabilization metrics — a scenario that could typically deter investors and force a property to trade at a discount.
In the case of Katella and Alamitos West, though, the opposite occurred: The deal not only surpassed expectations but also established a near record-setting price per skilled nursing bed for a non-stabilized asset in a post‑COVID, heavily regulated California market.
The deal is a sort of turning point for the skilled nursing sector. Since the COVID-19 pandemic, the industry has faced a number of headwinds, including elevated labor costs, reimbursement uncertainty and a complex regulatory environment.
Ultimately, the transaction was the product of its location and the marketing approach.
Scarcity is a defining factor in SoCal skilled nursing real estate. With no competing skilled nursing facilities within a 4-mile radius, virtually no path for new development and long‑term demographic demand accelerating, the property represented essential healthcare infrastructure in a market where supply is severely constrained.
Marcus & Millichap's Knapp Stahler Group, which represented both the buyer and the seller, marketed the property as a once-in-a-generation opportunity, targeting a limited pool of qualified buyers to maintain pricing tension and push the sale above guidance. The team then navigated roughly 11 months of limbo while the deal awaited approval under new state requirements.
Ultimately, the deal was a reset for the property type, illuminating the value of such properties, especially in Orange County.
About the project: The acquisition allowed for the expansion and diversification of a family office private equity group, a public REIT and a leading public healthcare operator. That alignment between institutional ownership and public-company operations highlights the importance of the campus — as well as Orange County's identity as a premier healthcare market.
What the judges said: "This sale achieved record pricing on a non-stabilized skilled nursing asset while overcoming significant regulatory and structural complexity," said Jillian Sabaugh, president and broker at Ukropina Sabaugh.
"The sale of a skilled nursing and assisted living facility to an experienced operator is impactful due to the increasing demand for critical services by an aging population," said Tom Abel, first vice president at CBRE.
They made it happen: The deal was overseen by Marcus & Millichap's Knapp Stahler Group, including Nicholas Stahler, managing director of investments; Hap Knowles, director of investments; Michael Mooner, director of investments; and Tony Solomon, senior vice president and district manager. The Goodman Group sold the property. The buyer was a group composed of private equity capital, the CareTrust REIT, IEP and The Ensign Group.