Lancaster Pollard’s Propero Fund II was the financing source of choice once again for Arcadia Communities as it continues to grow its portfolio. Founded in 2008, Louisville, Kentucky-based Arcadia owns and/or operates three seniors housing and care communities in Kentucky and Michigan. Six months ago, the company obtained $12.1 million from Lancaster Pollard’s second Propero fund to develop a 79-unit community in Clarksville, Tennessee, which will include independent living, assisted living and memory care services.
Now, Arcadia has another project in development, a 79-unit IL/AL/MC community in Bowling Green, Kentucky. Propero, which invests in seniors housing properties as the sole owner, triple-net leases them to an operator, and then sells the community back to the operator at a price based on Propero’s investment basis rather than the current fair market value, funded approximately $12.2 million in hard and soft costs for the Bowling Green development. The transaction minimizes the upfront capital from Arcadia while also provides a clear path to ownership. Chris Mauger led the transaction for Propero and Chris Blanda was the lead for Lancaster Pollard’s investment banking platform.
