Arcadia uses Propero® Equity Structure to Fund New Development
Arcadia Communities, headquartered in Louisville, Kentucky, was founded in 2008 and owns and operates three seniors housing and care properties in Kentucky, Louisiana, and Michigan. Seeking to expand its footprint, Arcadia sought funding to construct a new 79-unit seniors housing and care community consisting of independent living (IL), assisted living (AL) and memory care (MC) units. The project, to be called Arcadia Senior Living-Clarksville, will be located approximately 50 miles northwest of Nashville in Clarksville, Tennessee.
Arcadia, a repeat client of Lancaster Pollard and its Propero Seniors Housing Equity Fund, was seeking an equity partner to fund construction costs totaling approximately $12.1 million for the Clarksville facility. The Propero structure provided Arcadia an equity solution that allowed them to minimize the amount of upfront capital and provided a clear path to ownership. The transaction closed in July, 2016.
“We are excited to once again work with the team at Propero/Lancaster Pollard on this unique senior living project in Clarksville,” said Brian Durbin, president of Arcadia. “They have really provided our company with a funding structure that has allowed us to move forward with an aggressive growth plan.”
With the first fund (Propero Seniors Housing Equity Fund I) fully invested in early 2016, Lancaster Pollard raised its second fund (Propero Seniors Housing Equity Fund II) in April, 2016. Fund II is approximately twice the size of the first fund in terms of equity commitments. Chris Mauger led the transaction for Propero and Chris Blanda was the lead for Lancaster Pollard’s investment banking platform.