Propero: Part Two
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.... Read More »
Five years on…
A 94-unit senior living community in Covington, Louisiana changed hands five years after its last sale, more than doubling in value in the time. Granted, the community added a 24-unit memory care wing in 2014, which helped push the value. Nevertheless, after purchasing the community for $11 million, or $142,857 per unit, Arcadia Communities brought occupancy up from 91% to 99% in five years (even with the expansion) and nearly doubled the EBITDA. Now, the regional operator is selling the community to a national private equity firm for $22.2 million, or $236,170 per unit, with a 7% cap rate. Evans Senior Investments handled the transaction. Read More »Schedule a demo
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