Heavenrich & Company Announces Recapitalization Engagement and Closing of a Texas SNF
November 29, 2010 - Heavenrich & Company announced that it has been retained on an exclusive basis to serve as financial advisors of an East Coast senior housing company to explore recapitalization. The company owns approximately $90-$120 million in senior housing real estate and a well managed and highly successful operating company.
Heavenrich will be working with the owner and senior management to refine professional and personal goals before executing a plan. Heavenrich will address the challenge of how the owner can best monetize the value of the real estate assets and use that liquidity to grow the operations. The owner has recognized that this is a unique time in senior housing. By monetizing some of the Company's assets, the owner can capitalize on the unique environment and acquire distressed opportunities for the operating company.
"The downward pressure on cap rates, the opportunities for acquisition of distressed assets, the liquidity of the REITs and the prospect of escalating interest rates in the future all combine to make monetizing at least a portion of your portfolio a sensible move in 2011," said Adam Heavenrich. “We expect to see a majority of our business for 2011 in representing owner operators in sale/leasebacks of their portfolios. By holding on to operations, you stay in the game and have the opportunity to move quickly on opportunistic acquisitions. In addition, you can have another bite at the apple by growing operations and eventually selling off the operating company”.
Heavenrich also announced that it has completed the sale of a 66-bed skilled nursing facility in Claude, Texas, Palo Duro nursing home. The purchase price was $1.85 million.