Fund Watch: Green Courte Closes $410M Fund; Sunrise Secures $50M

Green Courte Partners just closed a new fund with $406.9 in commitments for investments in niche real estate assets, and Sunrise Senior Living recently obtained a $50 million senior secured credit facility from KeyBank.

September 22, 2011
By Barbra Murray, Contributing Editor

Real estate players are attracting green from investors and lenders alike. Green Courte Partners L.L.C. just closed a new fund, Green Courte Real Estate Partners III LLC, with $406.9 in commitments for investments in niche real estate assets, and Sunrise Senior Living Inc. recently obtained a $50 million senior secured credit facility from KeyBank Real Estate Capital.

Green Courte’s newest investment fund lured contributions from nearly all of the entities that participated in the firm’s previous two funds, as well as numerous newcomers. When leveraged, GCREP III will allow for investments totaling approximately $1.1 billion in asset types typically targeted by Green Courte, including senior living land-lease communities and parking facilities.

Financial institutions are also putting money on the table. The $50 million credit facility Sunrise obtained through KeyBank allows the senior living communities provider to have funds readily available to serve as working capital and be utilized for general corporate purposes. The facility is secured by Sunrise’s 40 percent stake in CC3 Acquisition L.LC., a joint venture with CNL Lifestyle Properties that owns 29 Sunrise-managed senior living communities.

The senior living market is a common denominator between Green Courte and Sunrise. Among Green Courte’s transactions in the sector in 2011 was the purchase of a portfolio of six age-restricted land-lease communities in central Florida through GCREP II. As for Sunrise, in an SEC filing, the company points to “strategic investments in attractive real estate opportunities” as one of its main goals in 2011. More and more money is being thrown at the senior housing sector, as its near- and long-term fundamentals get brighter and brighter.

“The resumption of job creation has begun to restore healthcare benefits for Americans, for instance, enabling the re-employed to move ahead with procedures requiring rehabilitative services in skilled nursing facilities,” as per a report by Marcus & Millichap Real Estate Investment Services. “Seniors housing property groups closely tied with the housing market, meanwhile, such as independent living facilities and continuing care retirement communities also have begun to stabilize, despite headwinds in the residential sector.”

And with the stabilization of healthcare-oriented real estate operations and the increasing number of baby boomers approaching retirement, demand in the senior living sector will increase well into the future, as will investor and lender interest.