SHA Capital Partners Enters Seniors Housing Market

by Jeff Shaw

MADISON, Wis. – SHA Capital Partners, LLC, has completed its first senior housing acquisition, buying Heritage House of Portage, a 66-unit assisted living property in metropolitan Madison, Wis., in a $5.9 million deal.

David Watkins, partner of SHA Capital Partners, said, “We like the opportunity to generate strong current cash flow and also create significant value through modest occupancy gains.”

SHA Capital Partners purchased the property directly from the owner, with no broker involvement.

“Our acquisition process was collaborative and patient,” says David Watkins, partner at SHA. “We gave the sellers a fair price and allowed them to focus on running the property, rather than selling it

MB Financial Bank, NA, provided debt financing. Chicago-based Matthews Senior Living will have an ownership interest in the partnership and will manage the community.

Tom Ostrom, president of Matthews Senior Living, says the capital improvement plan is an important step in attracting additional residents to the community. The plan calls for upgrades to the reception area, the dining room and other shared spaces.

“We see room for a few improvements that will enhance the quality of life for the residents, including creating a movie room, replacing flooring and reconfiguring the dining room,” says Ostrom.

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