Non-Profits See Mutual Benefit to Affordable Senior Housing Deal

Senior living non-profit Presbyterian Senior Living is seeing opportunity to bring new life to an affordable senior housing community through a recent acquisition and forthcoming rebranding.

Presbyterian Senior Living acquired The Shepherds in Monroe County, Pennsylvania in a deal that closed January 1, and will complete the transition to the new ownership by April, its executives say.

Both the community and new ownership are seeing opportunity through the acquisition by allowing The Shepherds to refocus its efforts on providing affordable senior care and Presbyterian Senior Living being able to expand its footprint and focus on affordable options for its residents—an initiative the organization been working on in recent years.

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The Shepherds, which began as a government-subsidized facility to care for those experiencing catastrophic medical expenses, also offers 84 senior living units. Under PSL’s ownership, it will operate as a single campus, despite having four contiguous separate developments, while the original services will remain under the former ownership.

“PSL has expanded its footprint in senior affordable housing over the last several years, both through construction and acquisition,” says PSL CEO Steve Proctor. “There are a number of groups that have single projects that over time look for a larger organization with an array of services to provide both financial security and those services. That was the beginning of our discussion.”

The Shepherds had been seeking a new operating company for roughly a year. Once discussions with PSL began, the process of getting the deal closed took roughly 4-5 months.

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“It moved quickly,” says The Shepherds board chairman Rev. George Alt., noting the alignment of missions among the two organizations. “We wanted to partner or with an organization that was keeping with our mission.”

The Shepherds is now a subsidiary corporation of Presbyterian Senior Living.

“In recognition of the Shepherd’s unique role in providing financial support to members of the community for catastrophic medical needs, Presbyterian Senior Living increased the endowment funds available for this purpose by $250,000,” Proctor explained.

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Further, a special committee of the Shepherds Board will continue to raise money toward that initiative and limited compensation was provided to the for-profit development partners for the senior living community so that PSL could assume 100% ownership.

The benefits remain twofold, says PSL, which now counts more than 30 properties under its management spanning Delaware, Maryland, Ohio and Pennsylvania.

“We’re very selective in how we do this,” Proctor says. “In a case like this, they’ve really kept up on the routine things. We have a capital list of things we are going to be reinvesting in—something we can help with and scale in over time rather than immediate needs like roofs needing to be replaced.”

The property currently is running a wait list with 100% occupancy.

Written by Elizabeth Ecker

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