New JV To Buy $1B in Skilled Nursing Assets

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NEW YORK CITY–Alternative asset manager Fundamental Advisors and developer Senior Care Development have extended their existing relationship to form a joint venture to acquire up to $1 billion in the beleaguered skilled nursing asset class.

The venture will focus on real estate assets leased to best-in-class skilled nursing operators in high barrier-to-entry markets, the companies said. The JV will also purchase performing or non-performing debt and make direct ownership interests in real assets.

Bleeding for years due to declining government payments and operational difficulties, the skilled nursing asset class is ripe for investment of this type. “With the current dislocation in the skilled nursing space, enduring and committed capital is needed to stabilize nursing homes that would otherwise struggle without it,” Laurence Gottlieb, Chairman and CEO of Fundamental, said in a prepared statement.

The two companies have collaborated on multiple transactions in the senior housing and care space over the past ten years, including the recent acquisition and foreclosure of Tandem Health Care’s mezzanine loan obligations of 41 skilled nursing facilities located in three states.

Founded in 2007, Fundamental Advisors targets stressed and distressed assets or securities, financing the development or revitalization of public purpose assets, or acquiring undervalued securities in the secondary market.

Senior Care Development specializes in developing and investing in the full continuum of senior housing with specific expertise and focus on high barrier to entry Life Plan communities and skilled nursing facilities.