KANSAS CITY, Mo. — Cain Brothers has arranged $51.8 million in bond financing for Kingswood Senior Living Community, a continuing care retirement community in Kansas City.
The bonds will fund the repositioning of the community, which Life Care Services operates. The campus was built in 1982 and faces several challenges in today’s seniors housing market. Approximately 40 percent of its independent living apartments are obsolete, there are only 14 units of assisted living, occupancy is low at the 82-bed skilled nursing facility and there is no memory care on campus.
LCS Development has formulated a turnaround a recapitalization plan that includes converting the obsolete independent living units to new assisted living and memory care units. In addition, renovations will be performed throughout the remaining units, common areas and amenities.
In addition to the 35-year, non-rated, fixed-rate bonds, Cain Brothers arranged $2 million of mezzanine financing to advance the development plan.