Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.
Issue link: https://seniorshousingbusiness.epubxp.com/i/484276
Acquisitions Joint venture acquires fve seniors housing facilities for $29.2 million New York — Care Invest- ment Trust LLC, a seniors housing-focused real estate invest- ment and fnance subsidiary of Tiptree Financial Inc. (NASDAQ: TIPT), has formed a joint venture to own and operate fve seniors housing communities with affli- ates of Royal Senior Care Manage- ment, a privately held owner and operator of senior housing facili- ties in the Southeast. The commu- nities are located in South Carolina and Florida. Care owns an 80 percent inter- est in the joint venture, while affli- ates of Royal own the remaining 20 percent and provide property management services to the com- munities under a management contract. Care and Royal expect to spend about $2.7 million in capital expenditures to enhance and repo- sition each of the properties. In connection with the acqui- sition, Care and Royal secured a $22.5 million, fve-year loan, which includes 36 months of interest-only payments and a $2 million earn-out feature pro- vided certain fnancial hurdles are achieved. The initial funding amount was approximately $19.9 million and the remaining amount was held back at closing to reim- burse the borrowers for capital expenditures. "We are excited to have closed this frst transaction with Care and look forward to the continued growth of our partnership," says Avi Bittan, CEO of Royal. "The Southeastern demographic of this acquisition, specifcally Florida and South Carolina, are a per- fect complement to our existing portfolio." SHA Capital Partners enters seniors housing market Madison, Wis. — SHA Capital Partners LLC has completed its frst seniors housing acquisition, buying Heritage House of Portage, a 66-unit assisted living property in metropolitan Madison in a $5.9 million deal. "We like the opportunity to generate strong current cash fow and also create signifcant value through modest occupancy gains," says David Watkins, partner of SHA Capital Partners. SHA Capital Partners pur- chased the property directly from the owner, with no broker involvement. "Our acquisition process was collaborative and patient," says David Watkins, partner at SHA. "We gave the sellers a fair price and allowed them to focus on running the property, rather than selling it." MB Financial Bank NA pro- Oakleaf Village, located in Lexington, S.C., is one of Royal Senior Care Management's communities. Take the express to capital. The shortest distance to capital is straight talk. CapitalSource, a division of Pacifi c Western Bank, Member FDIC We know how to clear the way for an opportunity. Our industry expertise and ef cient loan process allow us to get deals done. And backed by our solid balance sheet and lending power we deliver f exible solutions for any size and type of skilled nursing or seniors housing facility. Whether you're expanding, diversifying, or responding to the reimbursement and regulatory environment, we can get things done. Give us a call to get on board. Don Kelly, Senior Director, Healthcare Finance dkelly@capitalsource.com For more information call (941) 309-5322, or visit www.capitalsource.com Continuum Healthcare Four Skilled Nursing Facilities $48,000,000 Senior Term Loan Chestnut Healthcare 14 Skilled Nursing Facilities $30,000,000 Revolving Credit Facility Tryko Partners Two Skilled Nursing Facilities $14,600,000 Senior Term Loan Madison Realty Equities One Assisted Living Facility $9,500,000 Senior Term Loan 20 www.seniorshousingbusiness.com Seniors Housing Business n February-March 2015