ACQUISITION
Senior Living Communities, LLC - Charlotte, NC
www.senior-living-communities.com
Client Description:
Senior Living Communities, LLC (SLC) is a for-profit senior living operator based in Charlotte, NC.
Client Challenges:
Expand SLC’s portfolio while conserving capital to cover day-to-day needs.
Client Objective:
Acquire a state-of-the-art senior housing campus in St. Simons, GA, through an operating lease at a discount to replacement cost.
Health Care REIT Solutions:
Health Care REIT provided most of the capital to acquire the 75-acre senior housing campus that contains 140 independent living units and 42 health care-related units. Health Care REIT and SLC continue to collaborate on new opportunities.
“Health Care REIT understands the health care business and wants to be in it during all cycles. We found they provide certainty of closing at rates and terms that are both competitive and fair.”
Donald O. Thompson, Jr. | Chief Executive Officer
Senior Living Communities, LLC
DEVELOPMENT
Signature Senior Living, LLC - Dallas, TX
www.signatureseniorliving.com
Client Description:
Signature Senior Living, LLC, a Dallas, TX, operator of assisted living and memory care communities.
Client Challenges:
Raise construction financing, working capital for stabilization and long-term financing to develop a state-of-the-art assisted living portfolio. Conserve working capital to build a corporate staff. Avoid negotiating with various lenders to solve financial needs.
Client Objective:
Build a cluster of 10 or more purpose-built assisted living/memory care buildings within a two- to three-hour drive of Dallas. Target rural or small suburban locations with 25,000 to 80,000 residents where a new assisted living/memory care community had not been built within 10 years.
Health Care REIT Solutions:
Health Care REIT structured a master lease line of credit to fund Signature Senior Living’s capital needs. Land acquisition and all construction costs were funded under the master lease. A working capital line was sized for each building to fund the premarketing and working capital required to stabilize the buildings. HCN also provided construction monitoring support. Each building has filled and stabilized well ahead of budget.
“For our strategy, the financial returns to Signature using Health Care REIT are better than utilizing outside investors. Health Care REIT is a one-stop financing partner.”
Steven Vick | Chief Executive Officer
Signature Senior Living, LLC
MONETIZATION
Paramount Health Care Company - San Antonio, TX
Client Description:
Paramount Health Care Company, a San Antonio, TX, operator of modern skilled nursing facilities.
Client Challenges:
Transition ownership of Paramount from the founding partners to the operating team that helped build a successful business. Secure financing so operating team could purchase the company.
Client Objective:
Acquire the leasehold interest in the existing Health Care REIT sale-leaseback assets. Finance and exercise purchase options from a third party developer at closing. Finance future purchase options for an existing development pipeline.
Health Care REIT Solutions:
Structured a comprehensive financing package that allowed the leasehold interest to be transferred to the operating team and provided funding to take out the existing partners. This financing package also gave the new management team a line of credit from Health Care REIT to exercise purchase options on new assets upon stabilization.
“Health Care REIT was very creative in structuring a financial package that allowed us to build a company for the long-term. Health Care REIT has been a true partner versus a lender. They understand the skilled nursing business.”
Jim Meyers | President & CEO
Paramount Health Care Company
RECAPITALIZATION
CRL Senior Living Communities - Chicago, IL
www.crlcares.com
Client Description:
CRL Senior Living Communities, a Chicago, IL, operator of independent living, assisted living and memory care communities.
Client Challenges:
Obtain debt and equity financing for expansion. Generate revenue required to support a best-in-class management company.
Client Objective:
Partner with a “one-stop shop” financing source to provide capital for development and acquisitions. Develop an accomplished management team to oversee operations and maximize portfolio performance.
Health Care REIT Solutions:
Health Care REIT structured a master lease line of credit to fund acquisitions and development. Initial transaction was a sale-leaseback of existing assets to simplify structure and capitalization. Health Care REIT and CRL subsequently completed several development and acquisition transactions under a master lease.
"Health Care REIT has been a pleasure to work with. We appreciate their responsiveness and insightful perspectives. They add value and understand our vision."
Ari Weinberger | President
CRL Senior Living Communities