Source: Kong Capital
AUSTIN, TX - Kong Capital, in partnership with MedCore Partners, recently closed on the transaction of a seven-property senior housing portfolio. The group raised equity from Locust Point Capital who acts as the sole limited partner for the acquisition. The lender for the transaction is Bank of Montreal (BMO).
The 593-bed portfolio located in Washington State (Seattle/Tacoma) and Southern California (Orange County) consists of Independent Living (IL), Assisted Living (AL), and Memory Care (MC) and is operated by Senior Services of America.
"We are incredibly proud of this accomplishment," stated Kong Capital Founder and CEO Coe Schlicher. "Our team navigated the current market uncertainty and successfully took the transaction to the finish line. As the economic fallout from the pandemic increases, we are seeing more deals of this type coming to market. We will continue to aggressively source unique distressed opportunities which we consider to be our specialty."
In January 2020, Kong Capital and MedCore Partners put the off-market portfolio under contract for a $70MM purchase price. After receiving 4Q2019 financial statements and seeing a further decline in NOI, the purchase price was renegotiated with Ventas to $52MM.
Kate Ford, principal at Kong Capital, said, "Adjusting to the post-COVID world required new perspectives in underwriting and a fundamental re-evaluation of core risk assumptions, not to mention adjusting for the difficulties in allowing for safe community site visits during the current environment. We are grateful to work with partners who share our point of view."
"Kong Capital's principals are a group we have known for some time, so when the opportunity came up to work together on a transaction, MedCore knew the relationship would be accretive," commented Anthony Fulco, director of Acquisitions, Seniors Housing at MedCore Partners. "Our two groups worked well together on this deal, and we look forward to working on more opportunities with the Kong Capital team in the future."