RED BANK, N.J. — Locust Point Capital, an alternative asset manager based in Red Bank, has launched a new project equity financing program for the seniors housing industry.
The program will provide owner-operators equity capital for the construction, renovation and/or acquisition of independent living, assisted living and memory care facilities throughout the United States. The project equity amounts provided to owner-operators will be between $1 million and $10 million.
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 aims to reduce the amount of time needed to raise capital, and also provides access to institutional capital at the project level with a defined buyout option, according to the company.
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.