Hillhaven is a 100-unit/131-bed assisted living and skilled nursing facility located in northwest Prince George’s County, MD. The sponsor has experience in the space and is partnering with Meridian Senior Living, operator of 71 communities located in 19 states. Family-owned and operated for the past 40 years, there is a near-term opportunity to leverage Hillhaven’s first-class clinical reputation and culture to drive incremental occupancy through an active marketing program and to create a substantial long-term value through operational improvements, including centralization of many support functions that are currently performed at the facility level.
Hillhaven’s largest source of acute care admissions, Washington Adventist Hospital and Rehab in Takoma Park, MD, is relocating to a site one mile from Hillhaven. The new hospital is expected to open in early 2019. This presents a rich opportunity for multiple post-acute partnerships and affiliations between Hillhaven and the hospital. The sponsor sees an opportunity to increase assisted living rental rates, increase assisted living occupancy, improve overall operations, and modestly increase acuity levels in the skilled nursing wing. Upon stabilization in Year 3, the Asset is expected to be either refinanced with long-term debt through HUD or commercial financing with a target exit several years later following additional income growth.