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.
- 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.
- 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.