Lument Securities Advises Stonerise Healthcare on Sale
Lument Securities (Lument) recently advised Stonerise Healthcare (Stonerise), the leading skilled nursing and transitional care provider in West Virginia, on its sale to a group consisting of a New York-based real estate investment firm and an operating partner —CommuniCare Health Services.
Stonerise was founded in 2009. Its integrated network of care includes transitional and skilled nursing care, therapy, home health, and hospice services, which it provides throughout West Virginia and in Southeast Ohio. The skilled nursing portfolio of 18 owned and operated facilities across West Virginia totals 1,955 licensed beds, including a new 90-private-bed facility set to open in late 2022.
The sale of Stonerise’s businesses in skilled nursing facilities (SNFs) and a therapy company closed on June 30. The sale of the home health and hospice agencies, institutional special needs plan, and development project is expected to close upon receipt of customary regulatory approvals.
Managing Director Laca Wong-Hammond and Associate Director Dominic Porretta led the transaction for Lument Securities, which served as exclusive financial advisor to Stonerise. The transaction is the capstone of a decade-long U.S. Department of Housing and Urban Development (HUD) Federal Housing Administration (FHA) financing relationship between Lument and Stonerise, which was led by Managing Director Thomas Gale.
“As we assessed our strategic alternatives, we gained confidence that Lument’s M&A team had the depth of experience and proven track record to continue serving our company as we scripted the next chapter,” said Larry Pack, co-founder and CEO of Stonerise. “This transaction achieved all of our objectives including a confidential process, stability for ongoing operations, and a solution for many ancillary businesses. We knew the magnitude of our statewide franchise, coupled with our expectations on value and a smooth transition for our workforce, required superior execution – our investment bankers delivered.”
“This transaction is an ideal example of our ability to bring the full array of expertise for closely-held businesses, including creating tax-advantaged exit structures, leveraging our buyer relationships, and delivering results in-spite of volatile capital markets and operating environments,” said Wong-Hammond. “Together, we pushed the limits to achieve an extremely strong outcome for Stonerise.”
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.