Case Study: Pairing Tax-Exempt Capital With Proven Senior Housing Operations
AT A GLANCE:
6 senior living communities
507 total units
567 licensed beds
266 assisted living units
241 memory care units
$256.1 million bond financing
$227.0 million acquisition price
Existing management platform preserved
A Nonprofit-Sponsored Acquisition Built Around Operator Continuity
Northbridge Communities is an established senior living operator with deep experience in the Massachusetts market and a long operating history across this six-community assisted living and memory care portfolio. To support the next chapter for these communities, Northbridge worked with Citadel Housing to facilitate a nonprofit-sponsored ownership and tax-exempt financing structure designed to preserve Northbridge’s operating platform, maintain continuity for residents and staff, and support long-term stewardship.
The Challenge
Established senior living communities depend on stable ownership, experienced operators, and capital structures that support resident care, staff continuity, and reinvestment over time. But when senior housing assets change hands, communities can face disruption — particularly when ownership transitions are driven primarily by short-term capital objectives.
For Citadel Housing, the goal was to create a transaction structure that could preserve what was already working: six established communities, an experienced operating platform, and continued care for residents across 507 units and 567 licensed beds. Northbridge Senior Housing, LLC brought deep market knowledge and a long operating history with the portfolio, having developed, acquired, renovated, and/or managed the communities over multiple years.
The Solution
Through Citadel Housing’s subsidiary, Care Communities, LLC, the portfolio was positioned under new nonprofit ownership while maintaining continuity with Northbridge Senior Housing, LLC as Facilities Manager and Stafford Management Company, LLC as Services Manager. With D.A. Davidson & Co. serving as underwriter, the acquisition was financed through approximately $256.1 million of Massachusetts Development Finance Agency Senior Living Revenue Bonds, including tax-exempt and taxable components.
The structure funded a $227.0 million portfolio acquisition, established a $17.8 million debt service reserve fund, and provided $3.2 million of working capital at closing. Forecasted performance showed improving financial strength over time, with debt service coverage increasing from 1.29x in 2026 to 1.55x in 2029 and days cash on hand increasing from 66 to 147 days over the same period.
“Senior living communities represent a long-term commitment to residents,
families, and staff. A 501(c)(3)-aligned structure created a better fit — one designed around continuity, stewardship, and the ability for the operator to keep doing what it does best.”
“We were thrilled to secure capital for this long-term strategic alignment between Northbridge Communities and Care Communities and help further the mission of Citadel Housing.”
