Senior Living Portfolio Sale
Virginia, North Carolina, and Florida
In early 2016, RSF Fund V sold a portfolio of six senior living facilities (five assisted living/memory care and one skilled nursing) to a public healthcare REIT for a premium to the all-in development costs. The facilities were developed by Smith/Packett over a three-year period and master leased to four local operators. Although several of the facilities were recently opened at the time of the sale, RSF structured the transaction as an entity level stock sale to achieve long-term capital gains treatment for all six facilities.
RSF’s business plan was to develop senior living facilities with Smith/Packett in under-served supply-protected markets subject to long-term master leases. Four of the assets required obtaining CONs (“Certificates of Need”), a long and costly process, restricting the supply of additional competing beds in the market.
3899 Maple Avenue, Suite 250
Dallas, Texas 75219