Strategy Targets Real Estate Backed Equity Investments in the Seniors Housing and Care Sector Positioned to Benefit from Aging Population Demographics

RED BANK, NEW JERSEY, UNITED STATES, July 29, 2019 /EINPresswire.com/ -- Locust Point Capital, a leading alternative asset manager in the seniors housing and care industry, announced today the creation of a new project equity financing program. The program will provide owner-operators equity capital for the construction, substantial renovation and/or acquisition of independent, assisted living and memory care facilities throughout the United States. The project equity amounts provided to owner-operators will be between $1 million to $10 million.

The product is specifically designed to solve one of the main issues facing senior housing owner-operators looking to grow their portfolio – access to project equity. Many small to mid-sized healthcare owner-operators raise equity through friends and family, a time-consuming and dilutive process. Locust Point Capital’s project equity financing program reduces the amount of time needed to raise capital; it also provides access to institutional capital at the project level with a defined buyout option. When paired with a senior mortgage and/or mezzanine loan, this program can provide up to 95% of the total transaction costs, including hard costs, FF&E, soft costs, financing costs and reserves needed to reach stabilization. With this structure, owner-operators have the ability to refinance out the project equity at any time, allowing them to retain full control over not only the operations of the facility, but also the real estate. This product is specifically designed for owner-operators with a long-term hold strategy and not for real estate developers that utilize third party managers and look to exit at or near stabilization.

“We are excited to provide this new product to our clients. When utilized with other debt products, our owner-operators remain in control of the operations and facility of the project, a major advantage in growing their business at a faster pace. Our team’s operational knowledge and experience in providing various types of debt and equity structures allow us to offer our clients the optimal structure for their transactions,” said Eric Smith, CEO of Locust Point Capital. “We are thrilled to provide our customers with a faster, simpler, and more cost-effective means to obtain equity. With our streamlined process, owner-operators are able to get the funding they need in a timely manner which allows them to focus on running their businesses” said Dan Contardi, Managing Director of Locust Point Capital.

Locust Point Capital, Inc, is a SEC-Registered Investment Advisor.

About Locust Point Capital
Locust Point Capital is an alternative asset manager firm headquartered in Red Bank, New Jersey, with an office in Washington D.C. Led by a management team with deep experience in investing in the seniors housing and care sector, Locust Point Capital provides tailored capital solutions to owner-operators that need short-term, non-dilutive capital in order to execute their business plans. Locust Point Capital offers subordinate debt, preferred equity, project equity, and opportunistic senior mortgage loans, for acquisitions, refinancing, recapitalizations, new construction, capital investment, or working capital. Additional information about Locust Point Capital is available at www.locustpointcapital.com.

Eric Smith
Locust Point Capital, Inc.
+1 732-945-7474
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