Sunrise IV Senior Living Holdings, LLC (The Fountains)

Client & Engagement Overview

• Sunrise Senior Living operated nearly 400 IL, AL, and SNF communities​.
• In 1995, Sunrise entered into a joint venture with Arcapita to acquire the Fountains portfolio of 16 senior housing communities​.
• Counsel, on behalf of the bank group, needed assistance in understanding the operational and financial condition of The Fountains in order to explore strategic options​.
• By late 2008, portfolio performance and valuations had materially declined and the JV was in default with its bank group​.

Challenges

• Loan consisted of multiple tranches with conflicting economics.​
• Sunrise was facing liquidity issues and an uncertain future​.
• Arcapita was distracted by simultaneous negotiations with Sunrise.​

Outcome

• Quickly deployed resources to visit all 16 properties and developed comprehensive property-level reports and projections​.
• Provided the bank group with a range of alternatives and risks​.
• Assisted in the selection of a new operator, Watermark, and the plan of transition​.
• The bank group loan was restructured with no principal discount​.