No Money Down Real Estate Investing Course
Learn How To Buy Income Properties Without Risk, Good
Credit, Money Or Tenants!

Click here for more information
Welcome, Unregistered.
User Name
Forum Links
Site Navigation
Real Estate Resources
Go Back   Real Estate Investing > Real Estate General > Yahoo Investing Group
Thread Tools Search this Thread Display Modes
Old 09-28-2005, 09:37 AM
Posts: n/a
Default Sale Manageback Finance Stuctures to accomodate Senior Housing Owners

The mid-sized long term care companies and senior housing chains (i.e.
owning at least five properties) have accessed a financing vehicle that has
emerged over recent years---- as an alternative or supplement to traditional sale

The vehicle serves to redeploy the capital from asset sales into new
development projects or put into various strategic acquisitions, without incurring
the rigidities attendant to a formal leasing structure.

The format is provided through a Sale Manageback, viz. a financing
structure whereby the LTC or senior housing group sells the property to an inst
itution (e.g. through larger private equity groups or pension funds) and then
simultaneously takes back a long term management contract on the property which
it has sold to the institution..

That is, the LTC group sells the property but retains a long-term operating

The basic premise is that the "freed up" capital can better be used in the
central operating business rather than in being diverted into the ownership of
real estate---- all the while retaIning a management role, but not assuming
any lease obligations.

(A premise which can sometimes be challenged.)

It is not uncommon for knowledgeable borrowers to "carve out" or structure a
continuing minor participation in the cash flows----- to align interests and
to motivate the LTC group to perform well, but this is a matter of

The ideal borrowers are characterized by the following :

* Borrowers are highly experienced in the long term care or senior housing

* Minimum of five owned properties.

* A successful historical performance

* Sized at $25 million to $250 million.

* Nationwide.

If you wish to investigate the structure, please call Mr. Margolin of
Chilmark Associates Inc. at 203-353-0897.

[Non-text portions of this message have been removed]
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

All times are GMT -8. The time now is 12:56 AM.

Powered by: vBulletin Version 3.0.8
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 2.4.0
Copyright 2001 - 2006, Buy Income Properties, Inc. All Rights Reserved. Privacy Policy in Observance.