For those owner/operators that wish to grow their portfolio by development, but also limit the capital needed to get the project started, there is an unconventional option. Launched in 2012, Lancaster Pollard’s first Propero Fund invests in seniors housing properties as the sole owner and then triple-net leases them to an operator, which will then choose from a predetermined purchase option schedule when to acquire the community at a price based on Propero’s investment basis rather than the current fair market value. The success of the product means Lancaster Pollard has moved on to its second Propero fund, which approximately doubles the size of the first in terms of equity commitments. With $12.1 million from Fund II, the latest transaction involved Arcadia Communities developing a 79-unit senior living community in Clarksville, Tennessee. The project will feature independent living, assisted living and memory care units. Chris Mauger led the transaction for Propero and Chris Blanda was the lead for Lancaster Pollard’s investment banking platform.