Marcus & Millichap's Nick Stahler Closes $10.65M Sale of 34-Unit Bay Area Assisted Living Property

Marcus & Millichap has brokered the sale of a 34-unit assisted living property in the Bay Area, California, for $10.65 million, or $313,235 per unit, the firm announced Sept. 3, 2026. The transaction highlights sustained capital interest in stabilized senior housing assets situated in affluent, supply-constrained submarkets.

Deal Details

The property comprises more than 50 beds across its 34 units, a configuration consistent with assisted living and memory care layouts that typically run 1.5 or more beds per unit. Nearby landmarks include Zuckerberg San Francisco General Hospital, Seton Medical Center, Mission Plaza Shopping Center and San Bruno Mountain State and County Park. The property also offers access to major Bay Area transportation corridors.

Nick Stahler, managing director investments in Marcus & Millichap's Orange County office, held the exclusive listing on behalf of the seller and also procured the buyer. Both the seller and buyer are regional owner-operators, underscoring that local and regional capital sources remain highly active in single-asset senior housing trades.

Broker Commentary

"Investor demand for well-located senior housing communities continues to strengthen as the sector benefits from favorable demographic trends and limited new development," Stahler said. "This transaction generated multiple competitive offers, with buyers placing a premium on stabilized assets in highly affluent submarkets. In today's ever-evolving market, facilities with established operations in supply-constrained markets remain especially attractive as rates continue to grow, occupancy recovers and long-term demand increases."

Senior Housing Market Context

The Bay Area transaction lands during a period of broad valuation improvement and tightening cap rates across the senior housing sector. Assisted living cap rates have compressed steadily over the past several quarters, with Class A assets in core markets trading at approximately 6.5% as of mid-2026. Average assisted living cap rates fell roughly 19 basis points in the first half of 2026 alone, continuing a multi-quarter trend of compression even as the broader interest rate environment has remained elevated.

Senior housing transaction volume reached approximately $24 billion in 2025, the highest level in a decade, with deal flow in the asset class rising more than 50% year-over-year in the fourth quarter of 2025. The majority of investors active in the sector expect further cap rate compression over the near term, driven by recovering occupancy, constrained new supply pipelines and long-term demographic tailwinds from an aging U.S. population.

Those dynamics help explain why the Bay Area assisted living property attracted multiple competitive bids. Stabilized, infill assets in high-barrier-to-entry markets have commanded pricing at or tighter than national averages, as both regional operators and institutional buyers compete for limited available inventory.

About Marcus & Millichap

Marcus & Millichap is a commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, with offices throughout the United States and Canada. As of Dec. 31, 2025, the firm had 1,808 investment sales and financing professionals in more than 80 offices. Marcus & Millichap closed 8,818 transactions in 2025, with a total sales volume of approximately $50.9 billion.

Sources

Marcus & Millichap Press Release – Mission Villas, Sept. 3, 2026