ADVERTISER CONTENT

ADVERTISER CONTENT

Where the money came from

Investors from across the nation and around the world poured money into Georgia senior living facilities in recent years. Here’s how facilities have been financed.
The Glen at Lake Oconee Village, an upscale assisted living community in Greensboro that was funded by conduit bonds. (Hyosub Shin / Hyosub.Shin@ajc.com)

Credit: HYOSUB SHIN / AJC

Credit: HYOSUB SHIN / AJC

The Glen at Lake Oconee Village, an upscale assisted living community in Greensboro that was funded by conduit bonds. (Hyosub Shin / Hyosub.Shin@ajc.com)
Nov 24, 2019

Investors from across the nation and around the world poured money into Georgia senior living facilities in recent years. Here’s how facilities have been financed.

INDIVIDUALS SEEKING EB-5 VISAS

Wealthy foreigners can receive permanent residency through the EB-5 visa program by investing in a U.S. business. This source helped boost financing for Silver Comet Village, Towne Club Windermere and Provident Village Creekside and Provident Village Canton. It also was used for Towne Club at Peachtree City, which has since changed hands. The investments reportedly allowed immigrants from at least a dozen nations to live in the U.S., including people from China, Burkina Faso, Iran, Egypt, India, Mexico, Taiwan and Canada.

» SEARCHABLE DATABASE: Details on every home studied by the AJC

» MORE: The 'Unprotected' investigative series

FOREIGN COMPANIES

Chinese investment companies Fosun International, Cindat Capital Management Limited and Union Life Insurance purchased stakes in numerous senior housing properties. Arcapita, a Bahrain-based investment management firm, in 2016 bought Arbor Terrace of East Cobb and Arbor Terrace Peachtree City. Buligo Capital Partners, based in Israel, has Manor Lake Gainesville, Manor Lake Bridgemill and Manor Lake Hiram.

REAL ESTATE INVESTMENT TRUSTS

REITs allow investors to buy shares of income-producing portfolios of real estate properties. The REITs typically lease the facilities to operators or pay operators to manage them. Ventas, one of the nation's largest REITs, owns numerous facilities, including Sunrise at Huntcliff Summit I and II, Atria Buckhead and Atria Park of Tucker. Other REITs with a significant Georgia presence include Senior Housing Properties, whose homes include Northlake Gardens, Morningside of Gainesville and Cameron Hall of Ellijay, and Welltower, whose investments include Heritage of Peachtree and Heritage of Brookstone.

ajc.com
icon to expand image

PRIVATE EQUITY

Some large investment companies and their subsidiaries have purchased Georgia senior care facilities, and some have had a stake in operating them. Prudential Financial's private equity funds have attracted large institutional investors, such as pension funds. Another private equity investment firm, Texas-based TPG, acquired Assisted Living Concepts, once one of the nation's largest assisted living operators, after it was sued by investors and the federal government alleging fraud. The firm was rebranded as Enlivant, and TPG and Enlivant then acquired dozens of senior living properties. Among the Enlivant facilities in Georgia are Big Springs Place, Dublin Place, Kennesaw Place and Seven Hills Place.

» MORE: The senior home gold rush

» CONSUMER GUIDE: Resources for finding and evaluating a senior care facility

CONDUIT BONDS

To finance construction of senior care homes, some companies turned to Georgia development authorities to seek this type of municipal bond, which is not backed by taxpayers. The bonds may be tax-exempt, making them attractive to bond buyers. Among the facilities for which bonds have been issued are The Glen at Lake Oconee Village, Provident Village at Creekside and Lanier Village Estates.

INDIVIDUALS AND FAMILIES

Companies owned by individuals or families have numerous Georgia facilities. The family of state Rep. John LaHood has operated senior care homes for decades, including Fellowship Home at Brookside and Fellowship Home at Meriwether. LaSalle Group, owned by a Dallas man, had Autumn Leaves branded facilities in Georgia, but LaSalle is now in bankruptcy. So is Aspen Village at Lost Mountain, a Paulding County home owned by two people.

— LOIS NORDER

SOURCES: SECURITIES AND EXCHANGE COMMISSION FILINGS, BOND DOCUMENTS, COURT RECORDS, COMPANY DISCLOSURES, NEWS REPORTS.

More In This Series