Home Results Case Studies Bank Group – Continuing Care Retirement Communities​
Optimization of retirement facility enables organization to operate more efficiently to increase occupancy

A religiously affiliated organization developed and built a 53-story high-rise continuing care retirement facility with 248 living units in an urban location. However, due to market economics, it was only able to fill 82 units resulting in a default on the bonds and a draw on the letter of credit. The facility was built on land leased from an affiliate of the religious organization that complicated alternative use options. ​

The Solution
A member of the Harney team advised the bank group over a two-year period on financial options and operations changes​
Assessed monthly operating information and summarized for bank group​
Met with management on operational changed to achieve financial goals​
Advised the bank group on operating issues
Advised the bank group on restructuring matters​
The Results
Reconfigured certain units to be memory care units to handle demand of residents​
Worked with management team on changed to entrance fee model to increase occupancy​
Negotiated with representatives of the bondholders on restructuring matters​
Worked on improving billing and collection practice​
Services & Roles
Turnaround and Restructuring
Financial advisor to the bank group on a $120M letter of credit facility used as credit support for publicly issued bonds
*Some engagements may have been performed by team prior to joining Harney Partners.