Phorcys Capital Partners, an asset manager focused on distressed debt and equity investments in assets that were financed by municipal bonds, recently divested a seniors housing community in Greensboro, Georgia, after a little more than one year of ownership. Built in 2017, The Glen at Lake Oconee Village comprises 28 independent living, 68 assisted living and 18 memory care units. It was operated by SRI Management, and the community was sold to a leading healthcare REIT in November.
Phorcys purchased this asset in August 2023 for $26.45 million, or $232,000 per unit. The community was performing better than when initially acquired, running close to fully occupied at the time of divestment. Prior to acquiring The Glen, Phorcys owned the debt on the community. The transaction was overfinanced with municipal bonds and defaulted, with Phorcys becoming the stalking horse buyer in the receivership sale. Ziegler helped finance the deal.
Phorcys recently acquired another two properties in separate transactions that were also financed with municipal bonds. Most recently, in April, the company acquired Prosper at Wickliffe (f/k/a Tapestry Senior Living Wickliffe) in Wickliffe, Ohio. Prosper Life Care was brought on as the operator.
The community was built in 1979 as a hotel and was renovated/converted in 2018, now comprising 160 AL units. It was previously operated by Tapestry Senior Living. The purchase price in this distressed, “consensual” short sale was $13 million, or $81,000 per unit. RBC Capital Markets facilitated the transaction.
Additionally, in September of 2023, Phorcys acquired Inspired Living at Lewisville with joint venture partner SilverPoint Senior Living, rebranding the community as The Pearl Senior Living in Lewisville. Built in 2017, this seniors housing community in Lewisville, Texas, features 106 AL and 43 MC units. It was operated by Validus Senior Living.
The community was acquired through a Chapter 11 bankruptcy process for $26 million, or $175,000 per unit. Phorcys was the stalking horse buyer, with RBC again handling the transaction.
These three transactions were burdened by onerous capital stacks, poor operations and legal proceedings which deter many buyers from participating in the sales processes. Despite all of that, the Phorcys team was able to navigate the legal proceedings and acquire the assets free and clear through somewhat smooth legal processes. More from Phorcys is on the way, so stay tuned.
