Lument Securities recently served as exclusive financial advisor to the board of directors of Saunders House, a Philadelphia-area nonprofit skilled nursing facility (SNF), on its sale to a regional private operator. Managing Director and Head of M&A Laca Wong-Hammond and Associate Director Dominic Porretta led the transaction for Lument Securities.
Saunders House is a 180-bed SNF that offers a broad range of services, including short-term rehabilitation, traditional nursing care, memory care, restorative care, and respite care. It is located in Wynnewood, Pennsylvania, an affluent suburb along Philadelphia’s Main Line.
Kevin Ross, the former CEO of Saunders House, and members of its board of directors turned once again to Lument, which had advised them successfully on a previous transaction, and for which Lument’s Miles Kingston oversaw the financing relationship. Lument’s marketing process generated significant interest, ultimately securing letters of intent from 10 competitors. The transaction closed on October 3, and while terms were not disclosed, the board indicated the transaction outcome exceeded its expectations.
“The Lument team delivered for us once again,” Ross said. “We are appreciative of their guidance in helping us navigate the transaction process and secure favorable terms despite the turbulent capital markets and operational headwinds.”
Saunders House dates back to 1864 when it opened as the Old Man’s Home of Philadelphia. The current facility, which is located adjacent to Lankenau Medical Center, opened in 1973 and underwent a $3.5 million renovation in 2016. Despite historical profitability, Saunders House, like most SNFs, faced significant staffing and operational challenges during the pandemic. As a standalone provider, the board of directors of Saunders House desired a strategic and confidential sales process.
The nonprofit used the proceeds from the sale to fund a foundation that supports seniors housing and healthcare providers whose residents may lack financial resources. “With the significant transaction proceeds generated from the sale, we are in a better position to further our mission of serving seniors in the greater Philadelphia area for decades to come,” said Ross.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.