Services
Overview
SCA offers a variety of transaction related services to the senior housing industry including acquisitions and dispositions of single assets and portfolios, joint venture structuring and capital formation (debt and equity). SCA understands that each assignment has specific nuances, critical elements or opportunities that make it distinct. This is why SCA creates a custom-tailored approach for each situation. Bruces substantial transaction history with private and institutional investors, REITs and owner/operators as well as his tremendous relationships and access within the industry give him the unique insight necessary to produce exceptional results for his clients in what are often difficult or complex transactions. SCA clients benefit greatly from this understanding and wealth of experience.
Real Estate Brokerage
Most of SCA’s transactions involve representing a client in the acquisition or disposition of a property or portfolio. Senior housing involves not just real estate, but also an operating business that includes employees and residents. Because of this, it is critical to conduct transactions in a discrete, deliberate and time-sensitive manner so as to create as little disturbance as possible at the property level. This is why, rather than mass marketing, SCA produces highly targeted, custom designed campaigns specific to each transaction. SCA also quickly and quietly pre-qualifies groups that will be presented each opportunity. Making sure the investment profile and current financial capabilities of each group match the property’s characteristics reduces overall transaction time and increases the probability of maximizing value.
Joint Ventures
Many of SCA’s assignments involve joint ventures of one form or another. Often an owner/operator requires additional capital for new development or acquisitions, but doesnt want to conduct an outright sale of a property or portfolio in order to raise the needed capital because it would mean relinquishing management and perhaps exiting an otherwise strong market. In instances such as this, either a joint venture or sale/leaseback may serve to accomplish the owner/operator’s goals. SCA is highly skilled in joint venture negotiations that benefit both the owner/operator and investor.
Capital Formation
Sourcing the best purchaser, property or operator is only part of the equation for a successful transaction. Also required is a capital stack that is appropriately matched with the propertys income characteristics as well as the owners capabilities and risk profile. In other words, a property that is stabilized has different financial returns than a property that is still in lease-up or that will go through a renovation or expansion. It is important to understand how a property’s financial performance may change over time and to carefully match debt and equity to those changes. Properly underwriting and evaluating the past and future financial performance of a property is critical to securing the right capital structure. Bruce’s years of experience in financial analysis assure that this important process is thoroughly examined.