A new agency led by senior living business veterans, Scarp Ridge Money Associates, is launching with a $300 million fund targeting worth-insert, opportunistic and distressed expenditure chances.
“Scarp Ridge will seem to leverage our many decades of investing knowledge and market interactions to be the lover of choice to homeowners, loan companies, sponsors, and developers by attaining, recapitalizing or restructuring bargains to maintain and increase long-term price,” Rick Shamberg, a founder and controlling director of Scarp Ridge, wrote Thursday in an electronic mail announcing the new enterprise.
Though also concentrating on hospitality, the company is targeted mostly on senior housing, which includes independent residing, assisted residing and memory care. Scarp Ridge is concentrating on equity commitments of $10 million to $50 million.
Scarp Ridge’s system features acquisitions that can be designed below alternative value, with value-include potential through cash expenses, rebranding, new management or other procedures.
Scarp Ridge is also open to supplying runway money to present house owners, and may possibly purchase non-doing loans and make structured financing involving debt, mezzanine products and most well-liked equity.
“One of the differentiators amongst our fund and other funds resources is the intense functioning backgrounds of the principals and the complementary ability sets we have curated and introduced alongside one another,” Shamberg advised Senior Housing News in an email.
Shamberg has comprehensive expertise in the senior residing area, possessing held leadership and/or advisory positions with a assortment of firms focused on expense and functions, like Draper & Co., Atwell Wellbeing Partners, Cerulean Associates, Chicago Pacific Founders/Grace Management and Turnaround Options/Arrow Senior Living. He also served as a unique advisor to the Illinois Secretary of Commerce and in other general public company roles, including time in the George H.W. Bush White Property.
He is co-founding Scarp Ridge with Greg Hurry, who previously partnered with Shamberg to own and operate a behavioral health facility. In 2015, Rush proven Hurry Cash Companions, which has a current focus on deploying rescue funds into structured investments or recapitalizations with a emphasis on hospitality and senior housing. His past expertise also consists of leadership roles with Cadre, a information and know-how driven genuine estate investment management system that through his tenure invested about $600 million of fairness and $1.5 billion of overall transaction value into the multi-loved ones, business office and lodge sectors. In addition to encouraging guide various other firms, he served on the board of NorthStar Realty Finance Corp., and played a vital purpose in driving the three-celebration merger that established Colony NorthStar, a $17 billion REIT.
They are joined by Kari Schmidt, who used practically 23 decades with Brookdale Senior Residing (NYSE: BKD). Schmidt 1st joined Brookdale when the company’s portfolio numbered 16 communities, and helped guide the firm as it expanded to grow to be the biggest U.S. senior residing provider, with a current portfolio of additional than 700 communities. As a division president with Brookdale, she held responsibility for about $1 billion in income throughout much more than 300 communities. She commenced her vocation in the expert nursing area and also served as regional director of operations for Eby Development and Management, encouraging to grow the company’s assisted dwelling and memory treatment products into Midwest marketplaces.
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Scarp Ridge is launching at a time when the senior residing current market has been dislocated by the Covid-19 pandemic. The ordinary assisted residing acquisition value fell 30% in 2020, according to Irving Levin information.
Additional a short while ago, cap prices have fallen, particularly for reduced-acuity communities, a a short while ago released CBRE report indicated. Even so, promotions are still remaining finished for beneath substitute price tag, together with Welltower’s current acquisition of 86 Holiday getaway Retirement attributes. The serious estate expense belief estimated that deal cost to signify a 30%-moreover discount to alternative price.
And other funds are focusing on price-add options, together with a new Heitman fund with almost $2 billion in commitments.