After years of working together through an informal partnership, ESI and Carnegie Capital formally announced Monday that they have formed a strategic joint venture aimed at bringing both their respective brokerage practices under a seamless platform for senior housing and skilled nursing owners.
The move comes after hundreds of millions of dollars of financing together, said JD Stettin, managing partner at Carnegie Capital.
“We felt we could bring the most value to our clients by joining forces in this venture to more fully collaborate and leverage our combined data, expertise and relationships,” he told the McKnight’s Business Daily.
The firms said the pandemic certainly played an important role in the decision to pursue this joint venture.
“Lending has never been more challenging in the history of seniors housing, and we think now is the time for our industry to think outside the box of traditional lenders, and we have those relationships,” said Jeremy Stroiman, CEO of ESI.
Stettin noted that the current senior living and skilled nursing markets are lacking a breadth of lenders to solve borrowers’ needs, and amid the pandemic, many of the lending “usual suspects” have shied away from the market.
“Yet it was Carnegie’s biggest year, arranging more than 30 facility financings,” Stettin said. “This dislocation made it clear that the time was right to make available Carnegie’s relations with more than 3,000 lenders to a broader audience. This should be a boom time for seniors housing, and we want to help owners and operators realize that and transact with a full array of financial tools and capital providers.”
Stroiman and Stettin added that the firms are most excited about adding value to the industry for years to come.
“We are of one mind on this,” Stettin said. “Our shared expertise and relationships will bring the requisite liquidity and efficiency to owners and operators and facilitate deal flow, growth and stability for our market sector now and in the future.”
