The Cedars At the JCA

Client & Engagement Overview

• The client is a high-end long-term care campus located near Saint Louis, Missouri and sits on 25 acres and operates 230 skilled nursing, 22 residential care beds, and is licensed for a 54 bed LTACH
• The facility was built for $55.1M using a HUD-insured mortgage by the non-profit Jewish Center for the Aged (JCA).
• The JCA defaulted on the loan and Lehman Brothers Holdings purchased the loan.
• Lehman Brothers wanted to explore strategic options to liquidate their interest in the debt.

Challenges

• The well-publicized financial challenges of the facility negatively impacted the client’s marketing efforts to fill beds.
• The oversized rooms, facility layout, and LTACH beds posed operational challenges.

Outcome

• Developed a comprehensive information memorandum that highlighted the key attributes and presented ways to improve the facility layout.
• The sale process was competitive and resulted in a premium valuation that was well above the national average price per bed.