Sunrise IV Senior Living Holdings, LLC (The Fountains)

Client & Engagement Overview

  • Sunrise Senior Living operated nearly 400 IL, AL, and SNF communities​.
  • In 1995, Sunrise entered into a joint venture with Arcapita to acquire the Fountains portfolio of 16 senior housing communities​.
  • Counsel, on behalf of the bank group, needed assistance in understanding the operational and financial condition of The Fountains in order to explore strategic options​.
  • By late 2008, portfolio performance and valuations had materially declined and the JV was in default with its bank group​.

Challenges

  • Loan consisted of multiple tranches with conflicting economics.​
  • Sunrise was facing liquidity issues and an uncertain future​.
  • Arcapita was distracted by simultaneous negotiations with Sunrise.​

Outcome

  • Quickly deployed resources to visit all 16 properties and developed comprehensive property-level reports and projections​.
  • Provided the bank group with a range of alternatives and risks​.
  • Assisted in the selection of a new operator, Watermark, and the plan of transition​.
  • The bank group loan was restructured with no principal discount​.