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Assisted Living Campus Defaulted HUD Loan - A Case Study

The Long Hill Company served as receiver for a troubled assisted living campus

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Increase in Census

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Increase in Market Value

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About GE Capital

GE Capital is a sophisticated investor of senior living assets with an overall portfolio exceeding $2 billion. The GE Team has great experience and understanding of the assisted living market.  Based upon this experience, the GE Team was concerned about declining asset value relative to declining census, deteriorating facilities and high-staff turnover of its non-performing loan. Long Hill bolstered on-site leadership, reduced turnover and implemented a targeted census development plan. Occupancy levels improved and the asset was ultimately sold which resulting in a 100% recovery for GE Capital.

“We re-positioned the community within the market, improving aesthetics and care delivery program. As a consequence, rents doubled due to demand. At the same time, census improved from 50 to 112 residents.”

Jay Nickse
Managing Board Member, The Long Hill Company

The Challenge

Property acquired as part of a portfolio of defaulted HUD loads

Regulatory distress

Physical plant challenges

Assisted living management concerns

 

How We Helped

The Long Hill Company served as receive for the troubled assisted living campus.  The property was at risk of losing its licenses, placing asset value in jeopardy. We presented GE Capital with an exit strategy that involved a new company (501(c)3) and seller/equity financing plan and ultimate third-party sale.  

The Results

Strategic plan to exit GE Capital in less than one year

Achieved tax-exempt status

Investments made to the physical plant

Doubled census

Refinanced through HUD

Third party sale and debt assumption resulting in ROI of more than 50%

What can The Long Hill Company do for you?

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