Investcorp real estate group realizes ROI objective

25 Feb 2008

Investcorp’s US-based real estate group today announced the successful recapitalization of a two-property assisted living portfolio it jointly developed in partnership with Sunrise Senior Living, Inc., the senior living market leader in North America.  With this recapitalization, Investcorp fully exited its investment in both properties while Sunrise and an affiliate of Herbert J. Sims & Co., Inc. will jointly own and continue to operate both locations. Terms of the transaction were not disclosed.

Investcorp and Sunrise formed their joint venture in June 2004 to develop and operate two senior living communities, Sunrise of Crestwood in Yonkers, New York, and Sunrise of Upper St. Clair, in Upper St. Clair, Pennsylvania. The partners broke ground shortly after acquisition and construction of the properties was completed in late 2005.  The properties achieved full occupancy in late 2006 and early 2007 and today offer residents a full range of assisted living services in state-of-the-art facilities.

“Our development joint venture with Sunrise is a good example of Investcorp’s ability to team up with best-in-class operating partners and to invest across a broad spectrum of asset classes to create value for Investcorp and our investors,” said Peter Petron, Principal with Investcorp’s Real Estate group. “We entered this opportunity in 2004 with a business plan to develop these properties successfully and bring them to a stabilized operating level.  Both properties are extremely well situated within their respective submarkets and today enjoy high occupancy levels and good operating cash flow.  Having achieved our stated objectives together with Sunrise, now is a natural time for us to work with them on a recapitalization of this portfolio.  We look forward to future development and investment opportunities with Sunrise in the assisted living sector.”

Sunrise of Crestwood is a 79-unit senior living community located immediately northeast of New York City.  Sunrise of Upper St. Clair is a 73-unit assisted living community located in suburban Pittsburgh. Both properties feature studio, one-bedroom and two bedroom apartments, and are located conveniently near major state throughways with easy access to surrounding suburbs and major metropolitan areas.

About Sunrise
Sunrise Senior Living, a McLean, Va.-based company, employs approximately 40,000 people. As of September 30, 2007, Sunrise operated 454 communities in the United States, Canada, Germany and the United Kingdom, with a combined capacity for more than 53,000 residents. At quarter end, Sunrise also had 40 communities under construction in these countries with a combined capacity for 6,000 additional residents. Sunrise and its subsidiaries offer a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer’s and other forms of memory loss, as well as nursing, rehabilitative and hospice care. Sunrise’s senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents. To learn more about Sunrise, please visit

About Herbert J. Sims & Co., Inc.
Herbert J. Sims & Co., Inc., headquartered in Southport, CT, is a 73 year old company that specializes in providing capital to the senior housing industry.  It has over 40 years of experience in financing senior living facilities and has underwritten over $13 billion in projects throughout the United States. Sims is recognized as one of the leading experts in financing for the senior living industry.

Sims maintains brokerage offices in CT, NJ and FL to service its? large individual and institutional client base.

For additional information about how the investment banking professionals at Sims can help your business, please contact Jeff Sands at (203) 418-9002 or or visit our website at