SHA Capital Partners, LLC, announces the completion of its first senior housing acquisition, buying Heritage House of Portage, a 66-unit assisted living property in metropolitan Madison, Wisconsin, in a $5.9 million deal that closed Jan. 22. David Watkins, partner of SHA Capital Partners, said, “We like the opportunity to generate strong current cash flow and also create significant value through modest occupancy gains.”
SHA Capital Partners purchased the property directly from the owner, with no broker involvement. “Our acquisition process was collaborative and patient. We gave the sellers a fair price and allowed them to focus on running the property, rather than selling it,” Watkins said. His firm expects to pursue similar opportunities in Wisconsin and elsewhere.
MB Financial Bank, NA, provided debt financing.
SHA Capital raised equity from friends and family and from senior housing industry sources, including RSF Partners, LLC, a Dallas senior housing investment firm (http://rsfpartners.com/) that has completed more than $700 million of investment transactions.
Chicago-based Matthews Senior Living (www.matthewsseniorliving.com) will have an ownership interest in the partnership and will manage the community, focusing on creating a safe and supportive environment. Tom Ostrom, president of Matthews Senior Living, looks forward to a seamless transition: “We are impressed by the current administrative team at the property and the dedication they bring to serving the residents of Heritage House. We plan to build on the community’s strong foundation of caring and kindness.”
Ostrom said the capital improvement plan is an important step in attracting additional residents to the community. The plan calls for upgrades to the reception area, the dining room and other shared spaces. “We see room for a few improvements that will enhance the quality of life for the residents, including creating a movie room, replacing flooring and reconfiguring the dining room,” Ostrom said.