NEW YORK — Care Investment Trust LLC, a seniors housing-focused real estate investment and finance subsidiary of Tiptree Financial Inc. (NASDAQ: TIPT), has formed a joint venture to own and operate five senior housing communities with affiliates of Royal Senior Care Management, a privately-held owner and operator of senior housing facilities in the Southeast. The communities are all located in South Carolina and Florida.
Care owns an 80 percent interest in the joint venture, while affiliates of Royal own the remaining 20 percent and provide property management services to the communities under a management contract. Care and Royal expect to spend approximately $2.7 million in capital expenditures to enhance and reposition each of the properties.
In connection with the acquisition, Care and Royal secured a $22.5 million, 5-year loan, which includes 36 months of interest-only payments and a $2 million earn-out feature provided certain financial hurdles are achieved. The initial funding amount was approximately $19.9 million and the remaining amount was held back at closing to reimburse the borrowers for capital expenditures.
“We are excited to have closed this first transaction with Care and look forward to the continued growth of our partnership,” says Avi Bittan, CEO of Royal. “The southeastern demographic of this acquisition, specifically Florida and South Carolina, are a perfect complement to our existing portfolio.”