Marathon Asset Management Brokering Major Loan for Senior Living
Marathon Asset Management has taken a significant step by originating a considerable $154.5 million mortgage loan aimed at refinancing a distinguished portfolio of senior living communities. This endeavor involves a joint venture between notable firms Monarch Alternative Capital LP and REDICO, collectively known as the Sponsor.
The Impressive Portfolio Overview
This innovative loan supports the rejuvenation of The American House Florida Portfolio, which encompasses six premier, purpose-built senior housing communities. These communities feature a robust total of 817 units, broken down into 409 Independent Living units, 306 Assisted Living units, and 102 Memory Care units. Notably, five of these communities were developed between 2015 and 2018, strategically located in vibrant Florida markets that are currently experiencing noteworthy demographic growth.
The Role of REDICO
REDICO's successful investment in the Portfolio for nearly a decade has equipped the firm with in-depth knowledge of both the communities and their respective markets. Its expertise is underscored by the development of four communities from scratch. In a move indicating strategic foresight, REDICO also expanded the Portfolio in 2017 by adding two additional communities through targeted acquisitions. By 2021, the portfolio changed hands when Monarch acquired it, marking a recapitalization event. Throughout this transition, REDICO continued its involvement as a joint venture equity owner and manager through its affiliate, American House SLC.
Marathon's Partnership and Commitment
The success of this refinancing effort can be attributed to the collaborative work of Marathon's Commercial Real Estate Team, headed by Managing Director Joseph Griffin. Griffin, alongside his skilled team, collaborated closely with the Sponsor to facilitate the acquisition loan. Noteworthy contributions from Aron Will and Adam Mincberg, leaders at CBRE National Senior Housing, played a significant role in structuring the financing arrangements.
Meeting Demands of an Aging Population
In a statement reflecting the firm’s vision, Joseph Griffin shared, “We are excited to partner with Monarch and REDICO by providing financing on a senior housing portfolio that stands to benefit from the major demographic shift as the US population ages.” Furthermore, he added that they are strategically focused on the senior housing subsector, with plans to significantly bolster their portfolio allocation in this area over time.
About Marathon Asset Management
Marathon Asset Management, L.P. is recognized as a leading global asset manager, primarily specializing in Public and Private Credit markets. As of now, the firm manages an impressive portfolio with over $23 billion in assets under management. Marathon offers dedicated investment programs that span various aspects of Private Credit, including Direct Lending and Asset-Based Lending, as well as a diverse range of Public Credit options. Founded in 1998, the company is led by co-founders Bruce Richards (CEO) and Louis Hanover (CIO), employing more than 180 professionals, including eight Partners. Headquartered in New York City, with additional offices in London, Miami, Los Angeles, and Luxembourg, Marathon is also a Registered Investment Adviser recognized by the Securities Exchange Commission.
Frequently Asked Questions
What is the purpose of the $154.5 million loan?
The loan is aimed at refinancing The American House Florida Portfolio comprising several senior living communities.
Who are the main partners involved in this loan?
The joint venture partners are Monarch Alternative Capital LP and REDICO.
How many units are included in the portfolio?
The portfolio includes a total of 817 units across six senior housing communities.
When was the portfolio expanded?
The portfolio was expanded in 2017 when REDICO strategically acquired two additional senior communities.
What are Marathon Asset Management's areas of expertise?
Marathon specializes in Public and Private Credit markets with various investment programs across Direct Lending, Asset-Based Lending, and more.
