Case Study: Advancing Nonprofit Ownership Through Senior Living Acquisition Financing
AT A GLANCE:
5 senior living communities
261 total units
237 assisted living units
$98.42 million bond financing
$84.75 million aggregate purchase price
Capital improvement, working capital, reserve, and liquidity support funded
New Perspective management platform preserved
A Bond Financing Structure Designed to Support Acquisition, Reserves, Working Capital, and Long-Term Reinvestment
New Perspective Senior Living develops, acquires, owns, and operates senior housing communities in the Midwest and beyond. For five of those communities across Minnesota, Ohio, and Pennsylvania, there was an opportunity to transition ownership and create a financing structure capable of supporting the full acquisition: purchase price, reserves, working capital, capital improvements, and long-term stewardship. Working with Citadel Housing, the communities were positioned under a nonprofit-sponsored ownership structure supported by $98.42 million of Public Finance Authority Senior Living Revenue Bonds, while New Perspective remained in place as manager to continue day-to-day operations.
The Challenge
Senior living acquisitions require more than purchase capital. Communities must continue serving residents throughout the ownership transition, while the transaction structure must account for operating needs, regulatory timing, capital improvement requirements, reserve funding, and liquidity support. For assisted living and memory care communities, those considerations are not secondary; they directly affect resident experience, team stability, and the operator's ability to maintain consistent service delivery.
For New Perspective, the challenge was to align ownership transition with operating durability. The five communities included 261 total units, consisting of 237 assisted living units and 24 memory care units, with 267 beds in service and licensed capacity for 347 beds as of May 31, 2026. The communities were operating from a position of strength, and the transaction needed to preserve that operating foundation while placing the real estate into a structure designed for longer-term nonprofit ownership.
The Solution
Citadel Housing’s nonprofit-sponsored ownership structure provided a platform for the acquisition and financing of the five-community portfolio. The Series 2026 Bonds included $80.74 million of Tax-Exempt Series 2026A-1 Bonds, $3.68 million of Taxable Series 2026A-2 Bonds, and $14.0 million of Subordinate Tax-Exempt Series 2026B Bonds. Together with other funds, the financing was structured to support the $84.75 million aggregate acquisition price, capital improvement costs, working capital costs, required reserves, and costs of issuance.
The structure also paired long-term ownership with an experienced operating platform. In that way, the transaction demonstrated a distinct advantage of nonprofit ownership: the ability to combine mission-aligned stewardship with a financing structure designed to support acquisition execution, liquidity, reserves, and reinvestment from the outset.
“This transaction gives our teams the ability to continue serving residents without losing focus on what matters most day-to-day. By pairing New Perspective’s operating platform with a nonprofit ownership structure, the communities are positioned for stability, reinvestment, and long-term stewardship.”
“We were pleased to arrange and execute a thoughtful financing that brought together an experienced senior living operator, a mission-aligned nonprofit sponsor, and a portfolio of established communities. It is a strong example of how thoughtful capital can support ownership transition while keeping the focus on residents, teams, and long-term performance.””
