After purchasing an 84-bed/49-unit memory care community in Phoenix, Arizona in 2013, the new ownership invested significant capital to reposition the community and make it more competitive. It also helped that an experienced local operator was in the ownership group and could capture significant market share by improving both quality of care and the physical plant. The community is built in the cottage style, with seven single story buildings each with dining rooms and common areas. The concept is designed to help promote socialization and create a more “home-like” environment. Now, ownership was looking to refinance its existing debt while simultaneously funding capital improvements and an initial deposit to its replacement reserves. So in comes Lancaster Pollard, which arranged a $9.5 million HUD loan, with a 35-year term and low fixed interest rate, that generated both substantial debt service savings and over $335,000 in funds for capital improvements. Jason Dopoulos led the transaction for LP.
Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
