Project Description

The senior care development division of Mosaic Capital Group focuses on the creation, funding, development and management of new and follow-on senior care assets in the middle market and large cap market segments. A corporate-guaranteed lease with a qualified operating partner in the senior care industry backs each of our senior care equity investments. This division utilizes Mosaic’s innovative and proprietary Senior Care Lease Capitalization model (“SCLC”) to generate a lower overall cost of capital for our operating partners that enables them to achieve superior growth versus traditional capital financing methods. Within this division, Mosaic Capital Group operates a dedicated project specific SPE, with Mosaic performing the essential functions of day-to-day operations and implementation.

Senior Care Capital Growth Platform

Mosaic Capital Group, along with its investors and partners, provides all necessary investment capital to develop new senior care facilities across the United States with selected senior care operating partners. Through Mosaic’s SCLC model, we directly invest equity, sponsor debt and hold the asset for the agreed term of the lease.

Mosaic’s SCLC model provides our operating partners with the agreed lease-up reserves, marketing and FF&E funds necessary to stabilize a senior care asset. Current lease rates range between 7% and 8.5% of the total development costs, with the lease rate typically fixed for the first five years of the lease term.

We look to see our operating partners purchase the project within four to seven years from the commencement of the lease. Operators receive both a guaranteed purchase option at a preset discounted CAP rate, along with an equity interest at the time of purchase that enables them to secure takeout financing without additional cash equity. The ultimate terms of the structured lease and repurchase will depend on a variety of circumstances, including the strength of the operating partner and the financial projections for the project.